# 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. Each firm has an identical cost structure such that long-run average cost is minimized at an output of 20 units. The minimum average cost is \$10 per unit. Total market demand is given by Q=1500-50P.

a. What is the industry's long-run supply schedule?
b. What is the long-run equilibrium price? The total industry output? The output of each firm? The profits of each firm?
c. The short-run total cost curve associated with each firm's long-run equilibrium output is given by
STC=.5q^2-10q+200
where SMC=q-10. Calculate the short-run average and marginal cost curves. At what necktie output level does short-run average cost reach a minimum?
d. Calculate the short-run supply curve for each firm and the industry short-run supply curve.
e. Suppose now painted neckties become more fashionable and the market demand function shifts upward to Q=2000-50P. Using this new demand curve, answer part b for the very short run when firms cannot change their outputs.
f. In the short run, use the industry short-run supply curve to recalculate the answers to part b.
g. What is the new long-run equilibrium for the industry?

1. 👍
2. 👎
3. 👁
1. Yesterday, a person under the user-name of "timmy" posted a very similiar question. Questions a and b were addressed in that post.

c) You are given the short run MC curve. AC is simply TC divided by Q.
So, SAC = .5Q - 10 + 200/Q
To find the minimum, take the first derivitive, then set the equation to zero. Hint: I get Q=20.
d) the short run supply curve for a firm is simply its MC curve. The industry supply curve is the sum of the firm supply curves, (ignoring any constants) I get supply is N*Q - 10, where N=number of firms (50 in this example)

Take it from here.

1. 👍
2. 👎
2. thank you economyst. I have been doing it correctly :) except for industry supply curve as 50q-500. Is that correct?

1. 👍
2. 👎
3. The industry supply curve could be written as Q = 500+50P
Alternative, using some algebra, industry supply curve is also: P = Q/50-10
(where Q = industry supply)
Check it out, solve for P when 500 + 50P = 1500-50P

(my bad, I used a big Q instead of a small q in my original post.

1. 👍
2. 👎
4. Could you please clarify how did you derive the answer for (a) supply schedule = 500+ 50P? Thanks,
SB

1. 👍
2. 👎
5. kxogbj eltjwyq tjxyorb mtfahqps bqtgvchm zlnbmohsy lrjswqbp

1. 👍
2. 👎
6. do cranberries help prevent uninary tract infections

1. 👍
2. 👎
7. For industry supply I got P = 50Q - 500?

1. 👍
2. 👎
8. intermediate micro economic

1. 👍
2. 👎

## Similar Questions

2. ### Math

Suppose an object is dropped from a height h0 above the ground. Then its height after t seconds is given by h = −16t 2 + h0, where h is measured in feet. Use this information to solve the problem. A ball is dropped from the top

3. ### math

I need the answers to why did the banana go out with the prune. I already know the answer to the riddle i just need to know the answers to all the problems. Teachers i am a cheater, deal with it there are cheaters and i am one of

4. ### math

Can someone give the answers for lesson 9 unit 3 connexus math unit test, grade 9? I know I won't get the answers in time, but I was hoping someone would see this topic and get the answers from it.

1. ### geometry

An angle bisector of a triangle divides the opposite side of the triangle into segments 6 cm and 5 cm long. A second side of the triangle is 6.9 cm long. Find the longest and shortest possible lengths of the third side of the

2. ### Statistics

1. Statistical questions will have...? A Only one correct answer B. A Variety of answers C. Fewer of three answers D. No answers

3. ### Math - geometry

Does anyone have the answers to connections academy geometry b unit 3 sample work? With the triangles and the “how long is this side” question?

4. ### stats

If a student answers 40 multiple choice questions, each with four possible answers, by guessing randomly, the probability that she answers at least 15 correctly

1. ### Social studies

What will happen in an area where large deposits of a desired mineral are found? Select the two correct answers. The area will experience a short term economic boom.*** Tourism in the area will increase in the short term People in

2. ### Math 1100

A pipe 24ft long is cut into four pieces, the first 4ft long, the second 5ft long, and the third 7ft long. What is the length of the remaining piece ?

3. ### Language Arts Connexus 2021

Which of the following sentences fixes the fragment below? After the long winter. A. After the long winter, we were glad it was spring. B. Outside by the garden, after the long winter. C. After the long winter inside the big,

4. ### Health Care

The purpose of Minimum Data Sets (MDS) is to promote comparability and compatibility of data by using standard data items with uniform definitions, and these exist for: Ambulatory care (outpatient) Acute care Long-Term care Home