A firm is one of many identical firms in a competitive industry. The firm's cost function...
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A firm is one of many identical firms in a competitive industry. The firm's cost function is C(Q) = 45+5Q² The market demand curve is Qd-3000-5P. a. Find the individual seller's supply curve. b. Find the minimum point of the average cost curve. c. In long-run equilibrium, what must each seller's profits be? Find the long-run equilibrium price that satisfies this profit condition. (Hint: your answer part b may be useful here.) d. In long-run equilibrium, what is the market quantity, and what is the quantity supplied by an individual seller? e. How many sellers will be in the market in long-run equilibrium? Given this number and your answer from part (a), find the market supply curve. f. Suppose demand increases to Qd'-6000-5P. Find the new short-run equilibrium price and market quantity. g. In the new short-run equilibrium, find the individual seller's quantity supplied and profit. h. Given the profit result you found in part (f), will sellers enter or exit the market in the long run? Find the new long-run equilibrium price, market quantity, and quantity supplied by the individual seller. i. How many sellers will be in the market in the new long-run equilibrium? Given this number and your answer from part (a), find the new market supply curve. A firm is one of many identical firms in a competitive industry. The firm's cost function is C(Q) = 45+5Q² The market demand curve is Qd-3000-5P. a. Find the individual seller's supply curve. b. Find the minimum point of the average cost curve. c. In long-run equilibrium, what must each seller's profits be? Find the long-run equilibrium price that satisfies this profit condition. (Hint: your answer part b may be useful here.) d. In long-run equilibrium, what is the market quantity, and what is the quantity supplied by an individual seller? e. How many sellers will be in the market in long-run equilibrium? Given this number and your answer from part (a), find the market supply curve. f. Suppose demand increases to Qd'-6000-5P. Find the new short-run equilibrium price and market quantity. g. In the new short-run equilibrium, find the individual seller's quantity supplied and profit. h. Given the profit result you found in part (f), will sellers enter or exit the market in the long run? Find the new long-run equilibrium price, market quantity, and quantity supplied by the individual seller. i. How many sellers will be in the market in the new long-run equilibrium? Given this number and your answer from part (a), find the new market supply curve.
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Business Law The Ethical Global and E-Commerce Environment
ISBN: 978-1259917110
17th edition
Authors: Arlen Langvardt, A. James Barnes, Jamie Darin Prenkert, Martin A. McCrory
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