A perfectly competitive constant-cost industry has a large, Ask an Expert

Economics

A perfectly competitive constant-cost industry has a large number of potential entrants. Assume that each firm minimizes its LRAC at an output of 20 units and at an average cost of $10/unit. Market demand is given by QD = 1500 – 50P.

a. Draw a graph of the LR demand and supply for the market, including the LR equilibrium price and quantity for the market.

b. How many firms produce in the long run?

c. What is the consumer surplus (numerical value) at the competitive equilibrium? Identify the CS in your graph from part (a).

d. What is the producer surplus (numerical value) at the competitive equilibrium? Identify the PS in your graph from part (a).

View complete question

Business Economics, Economics

Category:- Business Economics
Reference No.:- M91916858

Have any Question?Write your Review or question?

Related Questions in Business Economics

The label on a can of sardines indicates the can contains

The label on a can of sardines indicates the can contains 10 sardines. You open up 100 cans and record the number of fish in each can. You find the sample average is 9.5 and sample standard deviation is 1. Calculate and ...

A sample of 20 has a mean of 100 and we can use a standard

A sample of 20 has a mean of 100 and we can use a standard deviation of 10. If we test this at an alpha of 0.05? What would be your conclusion and interpretation? How did you arrive at your conclusion?

A bar wants to move into a new area they want to find out

A bar wants to move into a new area. They want to find out the average income of people in the area to set a price point. To estimate the income of the locals with an error of at most $5,000 at a 80% confidence level, wh ...

Suppose the cost function of making jackets is cx x2 -

Suppose the cost function of making jackets is C(x)= x^2 - 50x+1500. How many jackets should you make to minimize the cost of the jackets? How much would be the minimum cost?

Given two eventsnbspgnbspandnbsph the probabilities of

Given two events G and H , the probabilities of each occurring are as follows: P( G ) = 0.22; P( H ) = 0.34; P( H AND G ) = 0.09. Using this information: Find the complement of P ( H AND G ). Round to 2 places.

John plans to take three suits on his business trip if john

John plans to take three suits on his business trip. If John owns 8 suits, how many ways can the 3 suits be selected?

Is the following an example of a binomial experimentat a

Is the following an example of a binomial experiment? At a campus activities board event, an entertainer gives tickets with sequential numbers to every attendee (i.e. 1, 2, 3, 4, 5... n). Throughout the event, the entert ...

What is the fraction defective if material hardness is

What is the fraction defective if material hardness is normally distributed with a mean of 42 and a standard deviation of 1 and the specification limits for hardness are from 35 to 45? What value for the process mean wil ...

Hey can someone give me super detailed answer as to why

Hey can someone give me super detailed answer as to why neoclassical economic theory could not have emerged prior to 1860s? Like I get that neoclassical economy focuses more heavily on mathematical part of economy but wh ...

Due to the impact of tropical storm harry in caribbean the

Due to the impact of Tropical Storm Harry in Caribbean, the price of sugar rises from $0.50 to $1.00 per bag and the quantity demanded falls from 1000 bags to 400 bags a. Calculate the elasticity of demand for sugar b. I ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Business Economics Expert