User Account

All Pages

A purely competitive firm is selling 2000 television sets

Assignment Help Microeconomics
Reference no: EM131034933

Assume that a purely competitive firm is selling 2000 television sets a day at a cost of $90,000. Assume that if the firm sells 1600 units per day, its total cost would be $60,000, and if it sold 1000 units per day, it would have a total cost of $55,000.

  1. Calculate the average total cost at these different sales levels.
  2. Assuming that the cost structure for every firm in the industry is identical, do you think that the industry could be in long-run equilibrium?
  3. If the industry is perfectly competitive, what would be the long-run equilibrium market price?
  4. If your answer to c is the market price and every firm in the industry is earning a normal profit of 15 percent, calculate what that profit would be

Reference no: EM131034933

Questions Cloud

Potential ability of one person in organization to influence : Daft text defines power as “the potential ability of one person in an organization to influence other people to bring about desired outcomes” (Daft, 2015, p. 369). Does power always come with one’s position in an organization? Explain your answer wit..
The definition for law of demand : The definition for law of demand, law of supply, price elasticity of dead, macroeconomics, and microeconomics.
Create the uaes counter-terrorism strategy : Write 6 strategies each strategy with a simple explanation - The UAE's Counter-Terrorism Strategy
Identify the types of managerial responsibilities : Managers' roles fall into three basic categories, which are informational, interpersonal, and decisional. Select one of the three categories. I selected interpersonal. Discuss why interpersonal is important to a manager. Explain the management proces..
A purely competitive firm is selling 2000 television sets : Assume that a purely competitive firm is selling 2000 television sets a day at a cost of $90,000. Assume that if the firm sells 1600 units per day, its total cost would be $60,000, and if it sold 1000 units per day, it would have a total cost of $55,..
Determine the overhang length b : the coefficient of static friction between the chain and the inclined plane is , determine the overhang length b so that the chain is on the verge of slipping up the plane µs = tanθ The chain weighs w per unit length.
Using the product-service identified in the week : Using the product-service identified in the Week 4 project, prepare the Marketing Plan’s Financials and Controls, as illustrated in the example plan on pp. 63-64 of your text. (Another example is in the Appendix; however, some of the sections are in ..
Work package for code implementation has release of a build : A work package for code implementation has release of a build as its completion milestone with a budget of 2,000 hours. The build includes 150 testable requirements. If the build was released with 120 requirements integrated, and actual cost of 1,800..
Buyer of televisions experience a decrease : When buyer of televisions experience a decrease in income what is the result to the consumer surplus

Reviews

Write a Review

Microeconomics Questions & Answers

  Inelastic and elastic demand formula for demand function

What is the Inelastic and elastic demand formula for demand function?

  Question related to international trade

Choose a United States multinational firm. In terms of currency denomination, discuss how the company values its revenues and costs.

  Suppose that a firm sells in a competitive market at a

suppose that a firm sells in a competitive market at a fixed price of 12 per unit. the firms cost function is c 200

  Explain the long-run perfectly competitive equilibrium

Illustrate with a diagram and explain the long-run perfectly competitive equilibrium for the firm and explain and illustrate using a diagram why a monopolist would never produce in the inelastic range of the demand curve.

  Which is worse-monopolies or competition

Given the recent events in the US Airways and American Airlines merger, one has to wonder, is the airline industry monopolistic? Which is worse, monopolies or competition? Describe your answer.

  Examine the costs of production for your firm

Examine the costs of production for your firm. What is (are) your firm's primary competitive advantage(s)? Are there entry barriers for firms in this industry?

  How to improve one-time additive

A producer of synthetic motor oil for automobiles and light trucks has made the following statement: "One quart of Dynolube added to your next oil change will increase fuel mileage by one percent.

  Determining the account the revenue from advertising

For every subscription purchased, the magazine gets $20 in advertising revenue. Taking into account the revenue from advertising, should the publisher lower or raise its annual subscription price p? What should the new profit maximizing level of p..

  What will be the new equilibrium level of real gdp

What is the equilibrium level of real GDP? What is the MPC? Suppose net exports increase by $400 billion. What will be the new equilibrium level of real GDP? Use the multiplier formula to determine your answer.

  What is the level of net exports equal to for this economy

You are told that the equilibrium level of output for this economy is $310 billion. What is the level of net exports equal to for this economy

  What was amount of the equal annual end-of-year payments

An engineer borrowed $3000 from the bank, payable in six equal end-of-year payments at 8%. The bank agreed to reduce the interest on the loan if interest rates declined before the loan was fully repaid.

  What will price and output be if there is no dominant firm

What will price and output be if there is no dominant firm Now assume that there is a dominant firm, whose marginal cost is constant at $6. Derive the residual demand curve that it faces and calculate its profit-maximizing output and price.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd