Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Hi, I need hlp with parts f. and g. of this problem please. Thank you! 3. The demand function for a competitive market is Q
Hi, I need hlp with parts f. and g. of this problem please. Thank you!
3. The demand function for a competitive market is Q = 8000 200P. In the short run, there are two types of firm in the industry. There are 1200 "type 1" firms with cost functions of ct(q) = 8 + 2q2, and 600 "type 2" firms with costs of ca(q) = 8 4q * 3q2. In each cost function, The "8" is an avoidable fixed cost (i.e. a cost that must be paid if q > O, but not if q = O). In parts a-d you can assume that all firms want to produce a positive quantity. Your answers will have fractions/decimals in them. b. d. e. g. Determine the supply function (i.e. supply curve) for an individual firm of each type. Determine the market short-run supply curve. Determine the short-run competitive equilibrium price. Determine the quantity produced by each firm. Determine the profit for each firm. What is the long-run competitive equilibrium price and quantity? How many firms of each type are present in the long-run competitive equilibrium?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started