13,

PERFECT COMPETITION

You will use this information to answer this question PLUS the next three questions.

Assume there are exactly 6 firms in your market BUT (despite this) the market is perfectly competitive.

The market demand function is Q = 110 P. The market supply function is Q = 10 + P.

All firms have the same ATC curve, and it is this:

ATC = 54 - .1Q + .004Q²

Which of the following are the current market P and market Q in this market?

Multiple Choice

• P = 60 and Q = 50

• P = 40 and Q = 60

• P = 50 and Q = 60

• None of the above

14.

PERFECT COMPETITION

You will use this info to answer this question plus the next 2 question.

Assume there are exactly 6 firms in your market BUT (despite this) the market is perfectly competitive.

The market demand function is Q = 110 P. The market supply function is Q = 10 + P.

All firms have the same ATC curve, and it is this:

ATC = 54 - .1Q + .004Q²

Based on the correct answer to the previous question (Question 13) and knowing that there are exactly 6 firms in this market, and knowing that each firm has the same ATC curve and each firm is producing the same quantity, which of the following is the current value of ATC for each firm in this market?

Multiple Choice

• $57.20

• $53.40

• $50.30

• $48.70

15.

PERFECT COMPETITION

You will use this info to answer this question plus the next 2 question.

Assume there are exactly 6 firms in your market BUT (despite this) the market is perfectly competitive.

The market demand function is Q = 110 P. The market supply function is Q = 10 + P.

All firms have the same ATC curve, and it is this:

ATC = 54 - .1Q + .004Q²

Based on the correct answer to the previous question (Question 13) and knowing that there are exactly 6 firms in this market, and knowing that each firm has the same ATC curve and each firm is producing the same quantity, which of the following is the current value of ATC for each firm in this market?

Multiple Choice

• $57.20

• $53.40

• $50.30

• $48.70