(Answered) The daily demand for pizzas is qd 750

Economics

The daily demand for pizzas is Qd= 750 - 25P, wherePis the price of a pizza. The daily costs for a pizza company initially include $50 in fixed costs (which are avoidable in the long run), and variable costs equal to VC=Q2/2, whereQis the number of pizzas produced in a day. Marginal cost is MC=Q. Suppose that in the long run there is free entry into the market. If fixed costs fall to $18 and, in the short run, the number of firms is fixed (so that neither entry nor exit is possible) and fixed costs are sunk, what is the new short-run market equilibrium? What is the new market equilibrium in the long run? How many firms are there at the new long-run equilibrium?

View complete question

Macroeconomics, Economics

Category:- Macroeconomics
Reference No.:- M91911856
Price:- $20

Verified Expert

Priced at $40 Now at $20, Verified Solution

Have any Question?Write your Review or question?

Related Questions in Macroeconomics

Production cost analysis and estimation applied problems

Production Cost Analysis and Estimation Applied Problems - Please complete the following two applied problems: Problem 1: William is the owner of a small pizza shop and is thinking of increasing products and lowering cos ...

Question - jacks faces the following demand function for

Question - Jack's faces the following demand function for its Jack in the Boxes: Q = 13000 - 8P. Jack produces the Jack in the Boxes in two facilities. The cost functions in each facility are: TC1 = 110,000 + 40Q1 + .09Q ...

1explain four types of unemployment2explain the advantages

1. Explain four types of unemployment 2. Explain the advantages and disadvantages of:(a) A flexible exchange rate regime (b) A fixed exchange rate regime 3. Suppose the Reserve Bank of Australia increases the interest ra ...

Question what are the primary differences between private

Question: What are the primary differences between private and public goods? Why might one be more efficiently provided by markets while the other is not? Explain. The response must be typed, single spaced, must be in ti ...

Question explain these questionscompare the marginal

Question: Explain these questions Compare the Marginal Revenue Curve for a firm in the PC-market with the Marginal Revenue Curve for the monopolist. Explain in your own words why a company that creates a negative externa ...

Question assume a nissan dealer in the us bought 30 maximas

Question: Assume a Nissan dealer in the U.S. bought 30 Maximas directly from Japan at a cost of $20,000 per car in the fall of 2002. By December 31, 2002, the dealer had sold 10 of these cars for $27,000 each. The remain ...

Question - how does strategic positioning benefit a firm

Question - How does strategic positioning benefit a firm? Discuss the importance of advertising, branding, and the effect of both on the product's demand curve.

Question consider the aggregate demand - aggregate supply

Question: Consider the Aggregate demand - Aggregate Supply model, suppose the economy begins in a short run equilibrium with output equal to potential output. - Illustrate this scenario in an AS-AD diagram. What is the i ...

Question develop a 12-slide microsoftreg powerpointreg

Question: Develop a 12-slide Microsoft® PowerPoint® presentation including detailed speaker notes or voiceover including the following: Describe the intervention and detail its history. Analyze the arguments for governme ...

Topics - mergers amp acquisition capital structure stock

Topics - Mergers & Acquisition, Capital Structure, Stock Trading etc. Q1. Develop an extensive form game with imperfect information (in which one of the players can be two or more types) that models any stylized economic ...

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 Macroeconomics Expert