economics

posted by .

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?
************************************

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

**********************************

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?
**********************************

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?

  • economics -

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

  • economics -

    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?
    ************************************
    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?


    **********************************

    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..

  • EEg -

    i don't knoe

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. economics

    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 …
  2. economics

    This is going to be really long, but I want to see if my answers are correct. This is problem number 10.10 in my Intermediate Microeconomics book. A perfectly competitive painted necktie industry has a large number of potential entrants. …
  3. Economics

    Assume the demand for beef is given by Qd = 22 + 0.1 Y – 10Pb + 5 Pc And the supply of beef is given by: Qs = -400 + 500Pb – 200 Pf where Qd denotes quantity of beef demanded, Qs denotes quantity supplied, Pb denotes price, of …
  4. Economics

    Suppose a monopolistically competitive firm’s demand is given by P = 100 – 2Q And its cost function is given by TC = 5 + 2Q a. Find the profit maximizing quantity, price, and total profit level. b. Is this a long-run or a short-run …
  5. economics

    since the AC curve in the problem is upward-sloping everywhere, it is not possible to construct a zero-profit equilibrium given the assumptions of the problem (this outcome requires a U-shaped AC curve). this problem will consider …
  6. econ

    2. Suppose that firms in an industry have the following cost function: C = 100 + 0.25q2, and the industry faces an inverse demand curve of P = 90 – 2Q. a. I f the industry is competitive, find the long-run equilibrium price, quantity, …
  7. Economics

    A long-run supply curve is flatter than a short-run supply curve because A. firms can enter and exit a market more easily in the long run than in the short run. B. long-run supply curves are sometimes downward sloping. C. competitive …
  8. Microeconomics

    A perfectly competitive industry has a large number of potential entrants. Each firm has an identical cost structure such that long run average cost is minimized at an output of 10 units (qi=10 ). The minimum average cost is R5 per …
  9. Advanced MicroEconomics

    In a competitive market, there are two groups of firms. For every firm in group A, the long-run ATC curve is U-shaped and intersects the long-run MC curve when ATC = 20 and output is 4. There is an unlimited number of firms in group …
  10. Advanced MicroEconomics

    In a competitive market, there are two groups of firms. For every firm in group A, the long-run ATC curve is U-shaped and intersects the long-run MC curve when ATC = 20 and output is 4. There is an unlimited number of firms in group …

More Similar Questions