I need assistance with question 28 - 35

01:57 0 & e . . . AG ,Ill .Ill 25% Eco4100W-BfinalexamSpring2020 (1) - Read-only Ky . . . Read Only - You can't save changes to this.. V Answer all questions completely and code your answers on the scantron (using graphs if helpful) . You may use a calculator but no cellphones, laptops, tablets, cameras, or other communicative devices. Suppose that the personal computer industry is characterized by a very large producer, Enormous Personal Computer, Inc., and by 10 other firms in a competitive fringe that produce clones of EPC's computers. Graph paper is provided but graps will not be graded. The Demand for personal computers is given by Q=-10P+40000 26. What is the inverse demand function? a. P = 40,000 -10Q b. P = 4,000 - 10Q c. P= 40,000 - Q/10 d. P = 4,000 - Q/10 e. some answer other than the above or cannot be determined. EPC can produce PCs at a constant marginal cost of $1,200 having fixed costs of $2000, while firms in the competitive fringe face increasing marginal costs, given by : MC=q + 400 27. Assume that each member of the competitive fringe acts as a price taker. Find each a. QF = 4,000 - P/10 firm's supply function. What is the supply curve of all the competitive fringe firms. b. QF = 40,000 - P/10 C. QF = 10P - 4,000 d. QF = 10P + 4,000 e. e. some answer other than the above or cannot be determined. Economics 4100 page 2 28. EPC knows the supply functions of the competitive fringe firms. Let M represent EPC's output. Find EPC's inverse demand curve, taking into account the behavior of the fringe firms. a. P =2,200 - M/20 . P = 1,800 - M/10 C. P = 1,800 - M/20 d. P=2,200 - M/10 e. some answer other than the above or cannot be determined. 29. EPC's equilibrium price and output are a. $2,200 and 18,000 b. $1,600 and 12,000 C. $1,000 and 30,000 d. $1,800 and 22,000 e. some answer other than the above or cannot be determined. 30. How many PCs will be supplied by each competitive fringe firm? a. 600 b. 800 O01:57 P O & . . . AGt ,Ill .Ill 24% Eco4100W-BfinalexamSpring2020 (1) - Read-only Ky . . . Read Only - You can't save changes to this.. V U. $1,0VV aHu 24,VVU e. some answer other than the above or cannot be determined. 30. How many PCs will be supplied by each competitive fringe firm? a. 600 b. 800 C. 1,000 d. 1,800 e. some answer other than the above or cannot be determined. 31. What is total output of EPC and the Fringe firms? a. 16,000 b . 20,000 C . 24,000 30,000 e. some answer other than the above or cannot be determined. 32. If EPC priced at marginal cost, what will be the increase in consumer surplus? . $ 12.6 million b. $ 16.2 million C. $ 28.8 million d. $ 45.0 million e. some answer other than the above or cannot be determined. 33. If EPC left the market, what will Q be in the short run? a. 18,000 b. 20.000 c. 22,000 d. 24,000 e. some answer other than the above or cannot be determined. 34. If EPC left the market, what will the level of consumer surplus be? a. $ 12.6 million b. $ 16.2 million C. $ 28.8 million d. $ 45.0 million e. some answer other than the above or cannot be determined. 35. If the competive firms were in long run equilibrium when EPC set market price when EPC exits the industry then a. In the long run firms will exit and price will rise. b. In the long run firms will exit and price will fall. C. In the long run firms will enter and price will rise. d. In the long run firms will enter and price will fall. some answer other than the above or cannot be determined. 10 of 10 O