Question: Suppose there are two production processes for making pfillip. In the first, the production function is y= k1/61/3 and fixed costs are 1/6. In the

Suppose there are two production processes for making pfillip. In the

Suppose there are two production processes for making pfillip. In the first, the production function is y= k1/61/3 and fixed costs are 1/6. In the second, the production function is y = k1/92/9 and fixed costs are 1/4. One hundred firms have access to the first technology, but only those hundred can use this technology. An unlimited number of firms have access to the second technology. Assume that the price of kapitose is $.50 no matter how much kapitose is utilized by pfillip producers. (a) What is the long-run industry supply curve for this industry? (b) Suppose demand is given by D(p) = 400 100p. What is the long-run equilibrium for this industry? (c) Suppose demand suddenly shifts to D(p) = 750 150p. Work out the short-run, intermediate-run, and new long-run equilibria. Suppose there are two production processes for making pfillip. In the first, the production function is y= k1/61/3 and fixed costs are 1/6. In the second, the production function is y = k1/92/9 and fixed costs are 1/4. One hundred firms have access to the first technology, but only those hundred can use this technology. An unlimited number of firms have access to the second technology. Assume that the price of kapitose is $.50 no matter how much kapitose is utilized by pfillip producers. (a) What is the long-run industry supply curve for this industry? (b) Suppose demand is given by D(p) = 400 100p. What is the long-run equilibrium for this industry? (c) Suppose demand suddenly shifts to D(p) = 750 150p. Work out the short-run, intermediate-run, and new long-run equilibria

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 Finance Questions!

Under what circumstances would a court disregard precedent?

Polaski Company manufactures and sells a single product called ?HTV-7?. Operating at capacity, the company can produce and sell 30,000 units of HTV-7 per year. Costs associated with this level of...

In the rest of this chapter, we lead the reader through the formulation of several more complicated linear programming models. The most important step in formulating an LP model is the proper choice...

For the following problems, I know the answers I just need to confirm my working, please show your working for all questions, Correct answers please!!! At the end of the first month of opening your...

Your company produces boxed cereal. There are three main processes used to make the cereal.The first process preps and shapes the corn into flakes.The second process bakes and seasons the corn...

Two different manufacturing processes are being considered for making a new product. The first process is less capital-intensive, with fixed costs of only $47,500 per year and variable costs of S735...

Your information: 1. Your company produces boxed cereal. There are three main processes used to make the cereal.The first process preps and shapes the corn into flakes.The second process bakes and...

PLEASE HELP ME FIGURE THE REST OF THIS OUT Final Project Due: November 27, 2020 Objectives: 1.Apply accounting manufacturing concepts to an actual product to solidify the learning process. 2.Learn...

Two different manufacturing processes are being considered for making a new product. The first process is less capital-intensive, with fixed costs of only $47,000 per year and variable costs of $750...

Two different manufacturing processes are being considered for making a new product. The first process is less capital - intensive, with fixed costs of only $ 5 1 comma 5 0 0 per year and variable...

Two different manufacturing processes are being considered for making a new product. The first process is less capital-intensive, with fixed costs of only $54,200 per year and variable costs of $690...

Find the value of (up to 5 decimal places) using bisection method given that it lies in the interval (3,4). Include plots of (a) Approximated value vs. Iteration number, and (b) Absolute error vs....

The Balance Sheet Financial Ratios The purpose of this SLP is to apply ratio analysis to assess the financial health of ABC Company. Use the balance sheet presented in the case during this module to...

BE12.18 (LO 2, 3) Cargo Company purchased land from Hazard Company for 20,000,000 on September 13, 2025. On October 31, 2025, it learned that the site was contaminated. As a result, Cargo sued Hazard...

You have just purchased a home and taken out a $480,000 mortgage. The mortgage has a 30-year term with monthly payments and an APR of 6.80%. a. How much will you pay in interest, and how much will...

2. Erin grows pecans. The number of bushels (B) that she can produce depends on the number of inches of rainfall (R) that her orchards get. The relationship is given algebraically as follows: B =...

7. What are the two major ways in which an economy can grow and push out its production possibilities curve? LO1.7 a. Better weather and nicer cars. b. Higher taxes and lower spending. c. Increases...

6. Explain how (if at all) each of the following events affects the location of a countrys production possibilities curve: LO1.6 a. The quality of education increases. b. The number of unemployed...