Ask Question, Ask an Expert


Ask Microeconomics Expert

problem 1: Below is a table with total data for a firm in a perfectly competitive industry.

875_competitive industry.jpg

a) What is the marginal cost and average total cost for the firm at each and every level of output?

b) If the prevailing market price is $34 per unit, how many units will be generated and sold? What are the profits per unit? What are total profits?

c) Is the industry in long run equilibrium at this price? If not, what do you expect to occur to price over time?

problem 2: The widget industry is perfectly competitive. The industry demand and supply functions for widgets are shown below.

Qd = 424 – 40P
Qs  = 40 +   8P

a) What is the equilibrium price and quantity for industry?

b) If the government establishes a price floor of $9, describe what will result in terms of excess demand or supply.

c) If the government establishes a price ceiling of $6, describe what will outcome in terms of excess demand or supply.

problem 3: Jones Company operates in a monopolistically competitive industry. The estimated demand for its products is given by the given inverse demand function:

P = 1760 – 12Q

It finance department has estimated its total cost function as:

TC = 24,000 + 5 Q – 15 Q2 + 0.333 Q3

a) What is the effect of a raise in fixed costs of $5000 on equilibrium price and output?

problem 4
: Smith Corp. has found out that its contribution margin, (P – MC)/P, is 40%. The recent market research study found the given relationship among adverting outlays and sales revenue.

704_profit maximizing.jpg

a) What is the profit maximizing level of advertising? Describe.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M91478

Have any Question? 

Related Questions in Microeconomics

Assignmentdraw the graph carefully please use one graph

Assignment Draw the graph carefully. Please use one graph per country and show both the autarkyand the free trade equilibrium on each graph. Consider the following data on the factor endowments of two countries A and B: ...

Assignment 1 -i watch the videos on demand and supplythere

Assignment 1 - I) Watch the videos on Demand and Supply There are 5 changes in Demand that shift the demand curve to the right or left.  They are Change in Tastes and Preferences Change in Income Change in Population Cha ...

Discussion questionplease read thoroughly and provide

Discussion Question Please read thoroughly and provide references • Manufactures of smartphones design products to be interactive with consumers. To remain competitive, designers are focused on getting a new product to m ...

Assignment money and pricethe organizations strategic plan

Assignment: Money and Price The organization's strategic plan you wrote about calls for an aggressive growth plan, requiring investment in facilities and equipment, growth in productivity, and labor over the next five ye ...

Suppose the economy was at equilibrium before the start of

Suppose the economy was at equilibrium before the start of the recession. Show this using the IS-LM, Keynesian cross, AD-SRAS-LRAS and money market spaces. Following the start of the recession, what happened to aggregate ...

Assignmentwrite a 5-6 page paper on one of the following

Assignment Write a 5-6 page paper on ONE of the following topics. Advice: Read the question you choose very carefully, and make sure you are answering it. What you write must be clearly relevant to answering the question ...

Topic minimum wage workers who actually are minimum wage

Topic: Minimum wage workers _ Who actually are minimum wage workers? _ What are the profites of raising minimum wage? _ What are the con's of raising minimum wage? _ What in your opinion should we do about minimum wage?

Microeconomics assignmentquestion 1 - read attachment

MICROECONOMICS ASSIGNMENT Question 1 - Read Attachment 1 Answer the following questions. Use diagrams where appropriate. [Assume that the Australian grape and wine industries are perfectly competitive markets]: Use deman ...

Microeconomics paper-project paperthe paper is to be a

Microeconomics Paper- Project Paper The paper is to be a properly formatted (APA) paper that I expect will take at least 5 pages to do properly. It is to take the material discussed in the course and apply it to some iss ...

Micro economics paperyou have been given the responsibility

Micro Economics Paper You have been given the responsibility of working with your organization's CEO to do a competitive market analysis of the potential success of one of their existing products. Select your organizatio ...

  • 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

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen