suppose a competitive market consists of identical firms with a constant long run marginal cost of $10. Suppose the demand curve is given by q=1000-p

a)What are the price and quantity consumed in the long run competitive equilibrium?
b)Suppose one new firm enters that is different from the existing firms. The new firm has a constant marginal cost of $9 and no fixed costs but can only produce 10 units (or fewer). What are the price and quantity consumed in the long run competitive market?
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Consider a competitive industry with several firms all of which have the same cost function, c(y) = y2 + 4 for y > 0 and c(0) = 0. The demand curve for this industry is D(p) = 50 - p, where p is the price.

a.Suppose that there are 10 firms in the industry, what is the equilibrium market price?
b.What is the profit for each firm?
c.What is the long-run equilibrium number of firms in this industry

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If the demand curve is , what is the elasticity of demand? What is total revenue when p=1 and when p=30? If production costs $1 per unit, and the smallest production level is 1 unit, how much should the monopolist produce?
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A profit-maximizing monopoly faces an inverse demand function described by the equation p(y) = 30 - y and its total costs are c(y) = 5y, Calculate the equilibrium price, output, monopoly profits and mark up. What would the equilibrium be if the market were supplied competitively by firms and each individual firm had the same costs?

So, do a little research, then take a shot. I or others will be glad to guide your thinking.

there are just certain things that i do not understand about the questions...(i did read A LOT last night and i did not find anything that really answered my questions...To be more specific...

suppose a competitive market consists of identical firms with a constant long run marginal cost of $10. Suppose the demand curve is given by q=1000-p

a)What are the price and quantity consumed in the long run competitive equilibrium?
b)Suppose one new firm enters that is different from the existing firms. The new firm has a constant marginal cost of $9 and no fixed costs but can only produce 10 units (or fewer). What are the price and quantity consumed in the long run competitive market?

how could one firm's Marginal cost be $9 and could only produced 10 units? Wouldn't one have to know the number of total firms in the competitive industry to answer this questions?
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If the demand curve is q=5/p, what is the elasticity of demand? What is total revenue when p=1 and when p=30? If production costs $1 per unit, and the smallest production level is 1 unit, how much should the monopolist produce?

how do you find elasticity if you do not have Q1, Q2, P1,P2, or for a nonlinear function?

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A profit-maximizing monopoly faces an inverse demand function described by the equation p(y) = 30 - y and its total costs are c(y) = 5y, Calculate the equilibrium price, output, monopoly profits and mark up. What would the equilibrium be if the market were supplied competitively by firms and each individual firm had the same costs?

For this question i don't even know where to begin..the teacher didn't give good notes and the textbook is all conceptual..there are hardly any examples..

i don't knoe

To answer these questions, we need to consider the concepts of market equilibrium, demand and supply, cost functions, profit maximization, and market structure. Let's break down each question and explain the steps to find the answers.

Question 1:
a) To find the price and quantity consumed in the long run competitive equilibrium, we need to equate the demand and supply functions. The demand curve is given by q = 1000 - p, and since there are identical firms, the long-run marginal cost is $10 for each firm. The supply function is determined by the cost function. In a competitive market, the supply of each firm will become the market supply. Since all firms have the same cost function, the supply function for the market can be written as Qs = n(Q), where Q is the supply of each firm and n is the total number of firms. We can equate the supply and demand functions to find the equilibrium price and quantity: Qd = Qs --> 1000 - p = n(Q) --> 1000 - p = n(10) --> p = 1000 - 10n. We also know that the quantity consumed is given by q = 1000 - p. Substitute the value of p from the earlier equation to find q in terms of n: q = 1000 - (1000 - 10n) = 10n. Therefore, in the long run competitive equilibrium, the price is p = 1000 - 10n and the quantity consumed is q = 10n.

b) If one new firm with a marginal cost of $9 and a maximum production of 10 units enters the market, we need to find the new equilibrium price and quantity. The new equilibrium will occur when the supply and demand functions are again equal: Qd = Qs. The demand curve remains the same, q = 1000 - p. However, now we have n + 1 firms with a marginal cost of $10 for all but one firm, which has a marginal cost of $9. We can rewrite the supply function as Qs = (n * 10) + 10 (for the existing firms) plus the quantity produced by the new firm (which is 10 or fewer). Equating the supply and demand functions again, we can solve for the equilibrium price and quantity.

Question 2:
a) To find the equilibrium market price in an industry with 10 firms, we need to equate the demand and supply functions. The demand curve is given as D(p) = 50 - p, and the supply function for each firm is the cost function c(y) = y^2 + 4. The supply for all 10 firms combined becomes the market supply. We can write the supply function as Qs = (n * c(y)), where Q is the supply of each firm, n is the number of firms, and c(y) is the cost function. Equate the demand and supply functions to find the equilibrium price.

b) To calculate the profit for each firm, we need to take the difference between the market price and the average cost for each firm, and multiply it by the quantity produced. Profit per firm = (market price - average cost) * quantity produced.

c) The long-run equilibrium number of firms in the industry is determined by the condition that no firm has an incentive to enter or exit the market. This occurs when firms earn zero economic profit in the long run. If firms in the industry are making positive economic profit, new firms will enter, increasing supply and decreasing market price. If firms are making losses, some firms may exit the industry, decreasing supply and increasing market price. The long-run equilibrium number of firms will be the point where no firm has an incentive to enter or exit.

Question 3:
To find the elasticity of demand, we need to calculate the percentage change in quantity demanded divided by the percentage change in price. Elasticity of demand (ED) = (ฮ”q/q) / (ฮ”p/p).

Total revenue is calculated by multiplying price (p) by quantity (q). Total revenue = p * q.

To determine how much the monopolist should produce, we need to find the level of production where marginal revenue equals marginal cost. Marginal revenue (MR) is the change in total revenue resulting from producing one additional unit of output.

The monopolist maximizes profit by producing at the level of output where marginal revenue equals marginal cost (MR = MC).