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

Assignmentyou are the director of safety and health at

Assignment You are the Director of Safety and Health at Rotorcraft America, a mid-sized company that designs, manufactures and sells helicopters. Your organization has manufacturing operations in San Francisco, Californi ...

1 the crr model european claimconsider the crr model of

1. The CRR model: European claim. Consider the CRR model of stock price S with T periods and parameters d (a) Consider the European claim X with expiry date T and the payoff X = g(S r ) = 1/S T 1[k,∞)(S T ). Show that th ...

Assignmentwe often have difficulty understanding how our

Assignment We often have difficulty understanding how our own customs and traditions could be viewed any way other than as right. In that regard, cultural relativism (viewing a custom from the other culture's perspective ...

E8-9 periodic versus perpetual entries fong sai-yuk company

E8-9 (Periodic versus Perpetual Entries) Fong Sai-Yuk Company sells one product. Presented below is information for January for Fong Sai-Yuk Company. Jan 1 Inventory 100 units at $5.00  each Jan 4 Sale 80 units at $8.00  ...

Assignmentthe agile approach towards system analysis and

Assignment The agile approach towards system analysis and development emphasizes iterative and incremental development, in which requirements and solutions evolve through collaboration. Prepare a 1000 word essay on the r ...

Leasing equipmentfor catherine owens onlybullsuggest one

Leasing Equipment For Catherine Owens Only • Suggest one key economic factor that motivates leasing as an option in acquiring an asset. Explain the potential asymmetries that may exist where leasing may be beneficial to ...

Assignment sustainability at top shelf shoesin this course

Assignment: Sustainability at Top Shelf Shoes In this course, you will work independently to analyze sustainability issues for a hypothetical organization. The assignments follow one another so that you can apply the met ...

Great depression economy paperwritten assignmentplease

Great depression , economy paper Written Assignment Please provide a comprehensive answer to the following two questions: 1) Which were the main causes of the Great Depression? 2) Why did the Great Depression last so lon ...

Assignment emerging economies and Assignment: Emerging Economies and Globalization

Assignment: Emerging Economies and Globalization Background Markets in developed economies are approaching saturation level. Therefore, MNCs are searching for new untapped markets in emerging countries such as India and ...

Assignmentxyz company enters into a contract with mary to

Assignment XYZ Company enters into a contract with Mary to landscape Ben's yard, using None Nursery to supply trees and buses. Kate owns the lot next to Ben's property. The landscaping is a gift from Mary to Ben, who is ...

  • 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

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

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