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Supp osesupplyinamarketisQS=13PPS= 3Q,(S)wherePisthepriceandQisthequantity.Thereisp erfectcomp etitioninthismarketanddemandisQD= 8012PPD= 1602Q,(D)Theequationstotherightaretheinversefunctions.(a)Calculatepriceandquantityinequilibrium.Illustratetheequilibriuminagure.Markcarefullytheslop esandin-tercepts(theintersectionsofthecurveswiththeaxes).(b)Calculatetheconsumersurplusandthepro ducersurplus.Illustratetheminthegure.(c)Supp osethereare20identicalcompaniesonthemarket.ThemarginalcostofanindividualcompanyisMC= 60q(MC)whereqisthequantityintheindividualcompany(whichmeansthatQ= 20q).Showthatthismeansthatthemarketsupplycurveistheonegiveninequation(??).(d)TheaveragevariablecostoftheindividualcompanyisAV C= 20q(AVC)Whereisthe'shut-downp oint' ?Explaininconnectionwithagure.

Supp osesupplyinamarketisQS=13PPS= 3Q,(S)wherePisthepriceandQisthequantity.Thereisp erfectcomp etitioninthismarketanddemandisQD= 8012PPD= 1602Q,(D)Theequationstotherightaretheinversefunctions.(a)Calculatepriceandquantityinequilibrium.Illustratetheequilibriuminagure.Markcarefullytheslop esandin-tercepts(theintersectionsofthecurveswiththeaxes).(b)Calculatetheconsumersurplusandthepro ducersurplus.Illustratetheminthegure.(c)Supp osethereare20identicalcompaniesonthemarket.ThemarginalcostofanindividualcompanyisMC= 60q(MC)whereqisthequantityintheindividualcompany(whichmeansthatQ= 20q).Showthatthismeansthatthemarketsupplycurveistheonegiveninequation(??).(d)TheaveragevariablecostoftheindividualcompanyisAV C= 20q(AVC)Whereisthe'shut-downp oint' ?Explaininconnectionwithagure.

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