Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A firm in a competitive market produces 120000 units when the market price was $80. Today at $120/unit 200000 units are produced and supplied daily.

A firm in a competitive market produces 120000 units when the market price was $80. Today at $120/unit 200000 units are produced and supplied daily. Consumers on the other hand. Buy 120000 when the market price is $100/unit but would only buy 110000 units when the price is $140/ unit

Can you do the cost function and answer for the following

1.Equilibrium market price and quantity

2.discuss the effect if the government adds $10 to the equilibrium market price

3.The quantity demanded and supplied

4.Profits/costs for existing firms

5.Market Outcomes, in the long run.

Please supply the cost function and graphs.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Smith and Roberson Business Law

Authors: Richard A. Mann, Barry S. Roberts

15th Edition

1285141903, 1285141903, 9781285141909, 978-0538473637

Students also viewed these Economics questions