Consider a perfectly competitive industry where each firm, Ask an Expert

Economics

Consider a perfectly competitive industry, where each firm has an identical short run total cost curve given by

TC(q) = 100 + q²

where q is the output of the individual firm, and all fixed costs are non-sunk.

a. What is the short run supply curve of the individual firm?

b. What is the short run aggregate supply curve for the industry, where there are 200 firms in the industry?

c. Suppose that the aggregate market demand curve is given by QD = 3000 - 50P, where P is the price of the product. What is the short run perfectly competitive price, individual firm output, and overall industry output for the 200 firms?

d. What is the short run shut down price for each firm? How does this short run shut down price differ from the long run shut down price? (you do not need to calculate the long run shut down price, just explain how it differs).

e. Given your answer to part c) above, do you expect there to be entry or exit of firms? Explain your answer. What is the impact of this on the market price?

View complete question

Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M9744504

Have any Question?Write your Review or question?

Related Questions in Microeconomics

Question consumption in the us burst upward for a period of

Question: Consumption in the U.S. burst upward for a period of time immediately after the election of Bill Clinton to the Presidency, despite no major changes in disposable income. Explain what could have caused this eve ...

Question anderson plastics has major fabrication plants in

Question: Anderson Plastics has major fabrication plants in Texas and New York The president, Bob Anderson wants to know the equivalent future worth of a $100,000 capital investment each year for 8 years. Anderson Plasti ...

Question assume that your probability of surviving an

Question: Assume that your probability of surviving an accident is greater in a car equipped with certain safety features. If so, what will be the likely effect on the number of accidents? Give a numerical example showin ...

Question currently the law prevents courts or police from

Question: Currently, the law prevents courts or police from releasing information about the criminal records of people under 18 years old. Members of certain minorities are more likely than other persons to have had prob ...

Question in addition to economic benefits regional economic

Question: In addition to economic benefits, regional economic integration produces political benefits. By fostering close economic ties between nations, regional economic integration helps foster peace, as illustrated by ...

Question use an isoquantisocost diagram and words to show

Question: Use an isoquant/isocost diagram and words to show how firms will respond to a decrease in the wage rate. (Assume substitution between labor and capital is possible.) Be sure to identify the short run scale effe ...

Question pricing some personal computer software is sold at

Question: Pricing Some personal computer software is sold at special discounts to students. Other software is provided in a less powerful versions for students. Why do publishers offer discounts to students? What is the ...

Question consider an income tax and a head tax the sizes of

Question: Consider an income tax and a head tax, the sizes of which have been set so that the government collects the same amount of money under each tax. Which tax does the consumer prefer? The response must be typed, s ...

Question draw a graph of the us automobile market in which

Question: Draw a graph of the U.S automobile market in which the domestic equilibrium price without trade is Pd and the and the equilibrium quantity is Qd. Use this graph to illustrate and explain the effects of a tariff ...

Question in the example from the exchange without

Question: In the example from the Exchange Without Production section, construct a different series of trades among the five people and show that it leads to the same equilibrium price and the same allocation of the good ...

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 Microeconomics Expert