Suppose that there are 100 identical firms in a market each, Ask an Expert

Economics

Suppose that there are 100 identical firms in a market. Each firm has a short-run marginal cost and average variable cost functions given by

SMC = 2+4Q

AVC = 2+2Q.

(a) Determine the supply function of each firm.

(b) Determine the market supply function.

(c) Suppose that the market demand function is given by P = 10 − 0.01Q. Calculate the market equilibrium price and quantity.

(d) Calculate the profit made by each firm.

View complete question

Business Economics, Economics

Category:- Business Economics
Reference No.:- M91677641

Have any Question?Write your Review or question?

Related Questions in Business Economics

Do you think that the taxicab industry in large cities

Do you think that the taxicab industry in large cities would be subject to significant economies of scale? Why or why not?

What is the average depth of the human vaginal

What is the average depth of the human vaginal cavity?

In a survey of first graders their mean height was 499

In a survey of first graders, their mean height was 49.9 inches with a standard deviation of 3.15 inches. Assuming the heights are normally distributed, what height represents the first quartile of these students?

Why is the labor demand for an individual firm in a

Why is the labor demand for an individual firm in a competitive industry more elastic than the labor demand for the entire industry?

Pure gasoline has an energy density of 115600 btu per

Pure gasoline has an energy density of 115,600 BTU per gallon, while ethanol has an energy density of 75,670 BTU per gallon. Gasoline cost $3.70 per gallon. What would the price of E85 (85% ethanol, 15% gasoline) have to ...

If we compare and contrast the four market structures it is

If we compare and contrast the four market structures, it is evident that one market structure is most practiced and evident in the United States. It is the one that promotes and strives on competition. It is the one tha ...

A banks loan officer rates applicants for credit the

A banks loan officer rates applicants for credit. The ratings are normally distributed with a mean of 200 and a standard deviation of 50. If an applicant is randomly selected, find the probability of a rating that is bet ...

Four balls are independently projected onto one target the

Four balls are independently projected onto one target, the probability of a hit for each is P1 = 0.1 , P2 = 0.2 , P3 = 0.3 , P4 = 0.4. What are the probabilities P04, P14, P24, P34, P44 that zero, one (1), two (2), thre ...

Mormons have a mission requirement to be admitted into

Mormons have a mission requirement to be admitted into their church. On average, the probability of converting someone is .03. How many people will Mormons on their mission have to interact with to ensure there is a prob ...

Eleven people have eleven different favorite numbers from 2

Eleven people have eleven different favorite numbers from 2 to 12. They all agree to participate in a 10,000-roll dice game where they bet $1 on their favorite number for each roll of two standard (fair) dice. A donor ki ...

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