Thursday
July 31, 2014

Homework Help: economics

Posted by michele on Thursday, September 20, 2007 at 11:23pm.

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?

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