Question: 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

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:

c v (y) = y 3

a. What is each firm's fixed cost?

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:

The emergency services coordinator for Dade County, Tallys DeCampinas, is interested in locating the county's two ambulances to maximize the number of residents that can be reached within 4 minutes...

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:

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...

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:

(3) You and a classmate are assigned a project on which you will receive one combined grade. You each want to receive a good grade, but you also want to avoid hard work. In particular, here is the...

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:

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:

Question 1 Pierre is a photographer in a perfectly competitive market. The graph shown above gives his MC, ATC and AVC curves. Pierre will decide to shut down in the short run if the market price is...

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:

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:

... Kindly address this. b) Suppose that in the recent news you have heard that an economy is at 'full employment'. Explain if this economy has got an unemployment rate at zero percent? (2 Marks) 3....

Q:

Campbell Soup Company is the worlds leading maker and marketer of soup, and sells other well-known brands of food in 120 countries. Presented here are the items listed on its recent balance sheet...

Q:

What is the primary factor that determines the price of securities? Can you think of another factor that might significantly affect how investors value the first factor?

Q:

so pretty much its a process that reviews and evaluates a companies financial statements to see how well the finances are and how it is producing

Q:

Arnold Ambitious has recently completed a difficult Financial Statement audit for a nonpublic audit client. Ingrid Influence, the CFO, is thrilled with Arnold's work and tells him that she will...

Q:

Write a final paper Prehistoric Art including following items Unit 1: Prehistoric Unit 2: Ancient Egyptian Kingdoms Unit 3: Ancient Greek Art and Architecture Unit 4: Ancient Roman Empire Unit 5:...

Q:

Wesley Hospital installs a new parking lot. The paving cost $40,000 and the lights to illuminate the new parking area cost $25,000. Which of the following statements is true with respect to these...

Q:

RTW Enterprises completed the following merchandising transactions in the month of August 2019 as follows: 1 Mr. Leon Ty, the owner started the RTW Enterprises by investing P150,000. 1 Purchased...

Q:

Explain, why an LED operating at the fixed current would be more stable than that operating at the fixed voltage Consider the effect of the device heating on the I(V) characteristics Explain under...

Q:

Grateful Company provided the following information for the current year: Dividends declared: P3,000,000; Borrowings from a bank: P1,000,000; Proceeds from the sale of land: P1,500,000; Proceeds from...

Q:

To realize business outcomes before and after HRM adoption.

Q:

How does the Cypriot context affect these issues at Zenon University? (Further reading about Cyprus or the southern European context may be needed). How do these issues relate with an institutional...

Q:

Identify HRM practices that can facilitate the promotion of female academics.