Suppose market demand is Q = 1000 - 4p. If all firms have LRAC = 50 -

Question:

Suppose market demand is Q = 1000 - 4p. If all firms have LRAC = 50 - 5q + q2, how many identical firms will there be when this industry is in long-run equilibrium?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Intermediate Microeconomics and Its Application

ISBN: 978-0324599107

11th edition

Authors: walter nicholson, christopher snyder

See More Books

Question Posted: Aug 05, 2013 03:43 AM

See More Questions

Suppose market demand is P = 130 - Q. a) If two firms compete in this market with marginal cost c = 10, find the Cournot equilibrium output and profit per firm. b) Find the monopoly output and profit...
In a competitive market, the market demand is Q d = 150 - 2P and the market supply is Q s = 30 + 4P. A price ceiling of $16 will result in a?
Suppose an industry consists of many firms with identical cost structures, represented by the typical individual firm in panel A of Figure 13P-4. Price is P1. With the aid of panel A, draw the...
Explain what you would assume the yield curve would look like during economic expansion and why.
A constant-angle arch dam ( = 150) is designed to span a vertical-walled canyon 150 m wide. The height of the dam is 7 8 m, including 3 m of freeboard. If the dam has 4 m thickness at the crest and...
Cammie received 100 NQOs (each option provides a right to purchase 10 shares of MNL stock for $10 per share) at the time she started working for MNL Corporation four years ago when MNL's stock price...
How has Maersk gained a competitive edge in this sector, and what are the key threats it is likely to face over the short- to medium-term? LO.1
Schiffer Corporation manufactures agricultural machinery. At a recent staff meeting, the following direct-labor variance report for the year just ended was presented by the controller. Schiffers...
2. An organisation produces a single product for which the following standard cost data are available: $ per unit Selling price 81 Direct materials 21 Direct labour 12 Variable production overhead 9...
Purchasing-power parity holds between the nations of Ectenia and Wiknam, where the only commodity is Spam. a. In 2015, a can of Spam costs 4 dollars in Ectenia and 24 pesos in Wiknam. What is the...
Rather than focusing on risk from an investors decision-making perspective, consider the risk of corporate decisions and how investors perceptions affect the true risk of corporate decisions. a. Why...
Suppose there are 1000 identical wheat farmers. For each, TC = 10 + q2. Market demand is Q = 600,000 - 100p. Derive the short-run equilibrium Q, q, and p. Does the typical firm earn a short- run...
Calculate depreciation expense: straight-line and activity methods. (LO 2) Best-Goods Company purchased a delivery truck for $\$ 35,000$ on January 1, 2006. The truck had an estimated useful life...
Brian is considering increasing the length of the cryptographic keys used by his organization. If he adds 8 bits to the encryption key, how many more possible keys will be added to the key space for...
Business law SECHON A [100 Marks] Read the scenario below then answer the questions that follow. Contracts are of critical importance especially in daily commercial and business transactions....
You may assume that the production costs to the winery are the same for each of the possible wines, despite the differences in volumes with some of the possible wines. Thus maximizing revenue will be...
You encounter a split system that uses R-22 refrigerant and observe the following refrigeration parameters from the unit's control display. The unit is operating in cooling mode. Suction pressure:...
A refrigerant at -20C is flowing through a 4" schedule 40 carbon steel pipe (inner diameter 102 mm, outer diameter 114 mm); the heat transfer coefficient for the refrigerant is 2500 W/m/K. It is...
Security market line What is the security market line? What is the slope? What is the y-intercept? Answer both in mathematical and definitional terms.
State whether each of the following will increase or decrease the power of a one-way between-subjects ANOVA. (a) The effect size increases. (b) Mean square error decreases. (c) Mean square between...
Why is the solution to heteroscedasticity as proposed in the first two questions unlikely to occur?
Galena Company purchases a patent for $120,000 on January 2, 2010. Its estimated useful life is 10 years. (a) Prepare the journal entry to record patent expense for the first year. (b) Show how this...
Information related to plant assets, natural resources, and intangibles at the end of 2010 for Spain Company is as follows: buildings $1,100,000; accumulated depreciationbuildings $650,000; goodwill...
Both the All About You story and the Feature Story at the beginning of the chapter discussed the company Rent-A-Wreck. Note that the tradename Rent-A-Wreck is a very important asset to the company,...
Assignment Title: The Role of Bookkeeping in Business Management and Financial Reporting Objective: Understand the importance of proper bookkeeping procedures in the management of...
17) The adjustment that is made to allocate the cost of a building over its expected life is called:A) depreciation expense.B) residual value.C) accumulated depreciation.D) None of the above answers...
9) Prepaid Rent is considered to be a(n):A) liability.B) asset.C) contra-asset.D) expense.10) As Prepaid Rent is used, it becomes a(n):A) liability.B) expense. C) contra-asset.D) contra-revenue.11)...

Suppose market demand is Q = 1000 - 4p. If all firms have LRAC = 50 -

Question:

Step by Step Answer:

In long run all firms operate where AC ...View the full answer

Intermediate Microeconomics and Its Application

Students also viewed these Economics questions