Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jun 21, 2024

Suppose the headphone industry is perfectly competitive and every firm has the following cost structure: MC= 50 + 6q ATC = 50 + 3q +

Suppose the headphone industry is perfectly competitive and every firm has the following cost structure:

MC= 50 + 6q
ATC = 50 + 3q + 675/q
AFC = 675/q

whereqis the number of headphone produced by a typical firm in a year.Assume the ATC and MC curves are the same in the short-run and long-run.The current market price is $74 per headphone.

Answer the following questions (4points each):

What is the profit-maximizing quantity sold at the current market price by each firm?
What is the long-run market price of headphones?
In the long-run, what is the theprofit-maximizingquantityof headphones sold?

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

Bank Management

Bank Management

Authors: Timothy W Koch, Steven Scott MacDonald, S Scott MacDonald

6th Edition

0324289278, 9780324289275

More Books

Students also viewed these Economics questions

Question

★★★★★

A gas is contained in a vertical, frictionless piston - cylinder device. The piston has a mass of 3.2 kg and a crosssectional area of 35 cm2. A compressed spring above the piston exerts a force of...

Answered: 1 week ago

Question

★★★★★

In base 10 addition, there are 100 addition rules plus a rule for carrying a 1. How many addition rules are there for base 6 ?

Answered: 1 week ago

Question

★★★★★

90. The number of accidents in each period is a Poisson random variable with mean 5. With Xn, n 1, equal to the number of accidents in period n, find E[N] when (a) N = min (n: Xn2 = 2, Xn1 = 1, Xn =...

Answered: 1 week ago

Question

★★★★★

Blanchard Inc. would like to borrow $12 million for 20 years through a bond issue but has been having difficulty finding lenders willing to advance that much. The firms investment banker has advised...

Answered: 1 week ago

Question

★★★★★

Find the price of a $1000 par value 10-year bond with coupons of 8.4% convertible semi-annually, which will be redeemed at 1050. The evaluation rate* is 10% convertible semi-annually for the first...

Answered: 1 week ago

Question

★★★★★

Hickory Company manufactures two products14,000 units of Product Y and 6,000 units of Product 2. The company uses a plantwide overhead rate based on direct laborhours. It is considering implementing...

Answered: 1 week ago

Question

★★★★★

We've done 50% of the work on a $290K budgeted project. Our project has spent $180K so far. a. What is the EV? b.EAC c.ETC

Answered: 1 week ago

Question

★★★★★

What is Extreme Project Management (XPM) and how this approach different from traditional project management (TPM) approaches? How would you determine if this is right approach for your project? How...

Answered: 1 week ago

Question

★★★★★

3. Assume you are ready to close the sale on a premium suite for a corporation. Create a sales dialogue between you and the decision-maker that results in a successful sale using the following...

Answered: 1 week ago

Question

★★★★★

5. Using the following data, calculate the breakeven point and margin of safety in units: Selling Price = $50 Variable Cost =$40 Fixed Cost = $70,000 Budgeted Sales = 7,500 units

Answered: 1 week ago

Question

★★★★★

Megan used to work at the local pizzeria for $30,000 per year but quit in order to start her own deli. Last year, she paid $6,000 rent each month, $5,500 for employee payroll each month, and $1,500...

Answered: 1 week ago

Question

★★★★★

Give a real-world example of when you would use the single t-test, the independent t-test, and the paired-samples t-test. Make sure and state thevariablesand how they are measured in each example

Answered: 1 week ago

Question

★★★★★

10. Find a news article in a daily newspaper, and answer the following questions: (a) Does the information in the article support your views and attitudes or does it conflict with them? (b) Does the...

Answered: 1 week ago

Question

★★★★★

2. Give an example where information that is emotionally interesting, specific and close in time and space, can be used to capture someones interest.

Answered: 1 week ago

Question

★★★★★

7. How can an interpreter influence the utterer (sender)?

Answered: 1 week ago

Previous Question Next Question