Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please answer the question 8, 9, and 10, thank you!! Problem 1. Suppose that, in a large city, 200 identical street vendors compete in a

Please answer the question 8, 9, and 10, thank you!!

image text in transcribed
Problem 1. Suppose that, in a large city, 200 identical street vendors compete in a competitive market. for hot dogs. 1. Each vendor's total costs to produce q hot dogs is, C(q) = 19 + q'. What is the marginal cost function of each firm? 2. Using your answer from part. 1, what is the supply curve for one individual firm? 3. Given your answer from above, how many hot dogs will cach vendor produce if offered a price of $4 per hot dog? 4. What is the aggregate supply curve for the market? 5. Let demand for hot dogs be Q - 2500-100P, what is the short run equilibrium price? 6. What is the total quantity of hot dogs sold in equilibrium? 7. In the long run, would you expect this industry to experience entry or exit? Explain your answer. 8. The total cost of one vendor is: 2+ q+ =q'. What is the long run equilibrium price? 9. What is the long run equilibrium price? 10. In the long run equilibrium, how many firms are active in the market

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

Business Law Principles For Today's Commercial Environment

Authors: David P Twomey, Marianne M Jennings

2nd Edition

0324303947, 9780324303940

More Books

Students also viewed these Economics questions

Question

Did the researcher seek out those who are silent and marginalized?

Answered: 1 week ago