simple homework questions

1. For each of the following price and cost function pairs, (d) What would be the shutdown price for each firm? determine how much the firm would want to produce (if they do want to produce), and how much profit they get. (e) What is the equation for the supply curve for one of these firms. (a) P = 16 and (f) What is the equilibrium price when there are 8 firms currently in the market? STC(Q) = 15 + 40+ 20' Q >0 7 Q=0 (g) Given that firms get 0 economic profit, when P = 31. How many firms would be in the market at an (b) P = 18 and equilibrium in which every firm earns 0 economic profit? mo STC(Q)= 26 + 60 +30' Q>0 Q=0 C 4. The soybean industry is perfectly competitive, and each producer has a total cost function TC(Q) = 50 +202- (c) P =21 and Q". The market demand is D(P) = 30 - 3P. (a) What are the long-run marginal and average cost 23 STC(Q) = 67+Q+20' Q>0 functions? 28 Q=0 (b) What is the long-run equilibrium price in the mar- (d) P =24 and ket, and how much will each firm produce in equi- librium? STC(Q) = 57 + 80+ 4Q' Q>0 (c) How many firms are in the soybean market in a 33 Q=0 long-run perfectly competitive equilibrium, and how much soybean will be supplied by all producers in 2. An industry currently consists of 12 producers, all of the market? whom operate with the same short-run total cost curve STC(Q) = 20 29 + 102 +Q' Q>0 Q=0 where Q is the annual-output of a firm. The demand curve is D(P) = 192 -8P, where P is the market price. jmolina3 jn (a) What is the equation for the MC? (b) What is the equation for ANSC? (c) What is the shutdown price for each firm? (d) What is the equation for the firm's supply curve? lina3 imolina (e) What is the equation for the market supply curve? (f) Determine the short-run market equilibrium price and quantity. (g) Calculate the profit of each firm in this equilibrium. jmolina3 in 3. There are & identical firms in a perfectly competitive mar- ket. They all face short-run total cost: STC(Q) = { + 50+30 + 20' Q>0 Q=0 where F is the sunk cost. The market demand is D( P) = lina3 imolina 171 - P. (a) When P = 31, how much would a firm want to produce to maximize profits? (b) When P = 31, what are the profits for a single firm in terms of F? jmolina3 in (c) What value of F will ensure that the economic prof- its of each firm are 0 when P = 31