Question: 1.Consider an industry in the U.S. facing aggregate (inverse) demand function: p(y) = 1050 - 5y The industry is currently in long run equilibrium. The

1.Consider an industry in the U.S. facing aggregate (inverse) demand function:

p(y) = 1050 - 5y

The industry is currently in long run equilibrium. The market price is $225 and there are n = 11 firms producing. Each firm's variable cost is:

cv(y) = [1] y3

a.What is each firm's fixed cost?

pdf 1/3

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

Q:

Alexanders unadjusted trial balance dated December 31, year 1, reports Income Taxes Expense of $100,000, and Income Taxes Payable of $25,000. The companys accountant estimates that income taxes...

Q:

Here is a screenshot of the real question with all the information. Economics Instructions - 2 - Word Faith Njoroge File Home Insert Design Layout References Mailings Review View Help Tell me what...

Q:

Consider an industry in the U.S. facing aggregate (inverse) demand function: p(y) = 1050 - 5y The industry is currently in long run equilibrium. The market price is $225 and there are n = 11 firms...

Q:

Explain the attached quotation below You may need to use the appropriate appendix table or technology to answer the question. Last year, 43:4 of business owners gave a holiday gift to their...

Q:

Microeconomics,, B. New machines, new buildings and other capital goods that add to the existing stocks of capital. C. Both D. None of the above. 2. Net investment is equal to- A. Gross investment...

Q:

1. A perfectly competitive constant cost industry is populated with many firms, and potential entrants, who all have the (long-run) cost function LC(q) = q3 20q2 + 100q + 8,000. a. What is the...

Q:

Answer appropriately. Final Exam (A) You have 2h to complete the exam and the final consists of 6 questions (15+10+25+15+20+15=100). Problem 1. (Consumer Choice) Jeremy's favorite flowers are tulips...

Q:

1. According to the text, as compared to rich countries, most of the poor countries do not fare well because: a. they have no oil. b. the people in these countries have limited property rights. c....

Q:

1. According to the text, as compared to rich countries, most of the poor countries do not fare well because: a. they have no oil. b. the people in these countries have limited property rights. c....

Q:

gg Suppose that there are three states of the world, a, b, and c. The probabilities of the three states are 1 = 0.25, 2 = 0.5, and 3 = 0.25. Let A, B, and C denote the Arrow-Debreu securities that...

Q:

Explain the following 1. [Externalities and car accidents] Consider an economy with two individuals i = [1, 2) with the following quasi-linear utility function uj(s', q') = v'(s') + ow where s'...

Q:

Marc Goudreau, administrator of Clearwater Hospital, was puzzled by the prior month s reports. Every month, its anyones guess whether the lab will show a profit or a loss. Perhaps the only answer is...

Q:

What would be the magnitude of the electrostatic force between two 1.00 C point charges separated by a distance of? (a) 1.00 m and (b) 1.00 km if such point charges existed (they do not) and this...

Q:

The cash return on an investment is calculated as purchase price - selling price.

Q:

Copa Company, a manufacturer of stereo systems, started its production in October 2010. For the preceding 3 years Copa had been a retailer of stereo systems. After a thorough survey of stereo system...

Q:

Presented below are incomplete manufacturing cost data. Determine the missing amounts for three different situations. Direct Materials Total Manufacturing Costs Direct Labor Used Factory Overhead...

Q:

Caroline Company reports the following costs and expenses in May. InstructionsFrom the information, determine the total amount of:(a) Manufacturing overhead.(b) Product costs.(c) Periodcosts. Direct...

Q:

Francum Manufacturing Company has the following data: direct labor $229,000, direct materials used $180,000, total manufacturing overhead $208,000, and beginning work in process $25,000. Compute (a)...

Q:

Coldplay Corporation incurred the following costs while manufacturing its product. Work-in-process inventory was $12,000 at January 1 and $15,500 at December 31. Finished goods inventory was $60,000...

Q:

4) Review the social media metrics framework shown in Table 10.2. Then develop a similar framework for your business. This should be consistent with what you have included in your social media...

Q:

5.3 Explain internal recruitment methods.

Q:

What are some of the challenges facing the commercial airline industry? Discuss.

Q:

Given the changing landscape for staffing commercial airlines with qualified pilots, what are some considerations for the airlines human resource management practices?