Assume market with monopolistically competitive structure

Assignment Help Business Economics
Reference no: EM131108638

Assume a market with a monopolistically competitive structure (differentiated products, free entry and exit). Also assume that each firm has a total cost function of TC(qi) = 150+ ½ qi 2 for i?{1,2, …, n} (i.e. symmetric cost function) . Demand curve for each firm is given by P=1000 -10n – qi which means that the demand depends not only on the price but also on the number of different substitute product that are out there.

a) What is the price, quantity and profit for each firm if there are 10 firms in the market in the short term?

b) What is the price, quantity and profit in this market in the long-term? What will happen to the number of firms in this market?

Reference no: EM131108638

Questions Cloud

What implication does this have on the political economy : Tragedy of the Common. What does Hardin mean by “It is one of the peculiarities of the warfare between reform and the status quo that it is thoughtlessly governed by a double standard.”? What is the “double standard” and what implication does this ha..
How do you feel about conducting action research now : Describe how you perceive the value of qualitative and quantitative data when considering improvements. How do you plan to use the knowledge you gained in this course to be a positive change agent in your own work setting? In other words, what are ..
What is the price in the domestic market : How much will the firm produce, how will production be divided between the two plants, and how much will be sold in the two markets? What is the price in the domestic market, and what will be the firm's profit?
Question regarding the price fixing of interest rates : You have been hired by a firm because they believe that price fixing of interest rates has occurred at the bank. What steps should you take to investigate?
Assume market with monopolistically competitive structure : Assume a market with a monopolistically competitive structure (differentiated products, free entry and exit). Also assume that each firm has a total cost function of TC(qi) = 150+ ½ qi 2 for i?{1,2, …, n} (i.e. symmetric cost function). What is the p..
Choose a research topic and an interviewer : For this assignment, you will submit only the FINAL copy as there is no DRAFT option. This assignment is designed to help inform a topic that interests you, and the information you gather here will be used in your Proposal Letter assignment.
Calculate the unloaded q : Determine the capacitor value to achieve the lowest order resonance at 6.0 GHz. (b) Now assume that loss is introduced by placing a 10,000 resistor in parallel with the capacitor. Calculate the unloaded Q.
Pretax financial income for 2010 : Prepare the income tax expense section of the income statement for 2010, beginning with the line "Income before income taxes."
Dominated by large firm with significant production capacity : The color copy machine market is dominated by a large firm with significant production capacity. The market demand for color copy machines is: Q = 4300 - 5 P The dominant firm has projected the supply by the small firms in the market to be: Qs = - 70..

Reviews

Write a Review

 

Business Economics Questions & Answers

  Evaluate the change in costs over the period in real terms

Suppose industry abatement costs rise from $850 million in 2004 to $1,000 million in 2005 in nominal terms and that the CPI is 100 in 2004 and 106 in 2005. Evaluate the change in costs over the period in real terms, first in 2004 dollars and then in ..

  Private sector has rational expectations

Assume that the central bank takes the drastic strategy in part 1, but that the private sector has rational expectations.

  Competitive equilibrium under asymmetric information

(Karloff) Consider the following market for used cars. There are many sellers of used cars. Each seller has exactly one used car to sell and is characterized by the quality of the used car he wishes to sell. Let θ ∈ [0, 1] index the quality of a used..

  Menu costs-shoe-leather costs-unit-of-account costs

Bob manages a grocery store in a country experiencing a high rate of inflation. To keep up with inflation, he spends a lot of time every day updating the prices, printing new price tags, and sending out newspaper inserts advertising the new prices. T..

  Explain the positive aspects of this government involvement

Describe the many ways the government affects economic activity. Explain the positive aspects of this government involvement. Now, explain the negative aspects of government involvement. Finally, describe to what extent you believe the government sho..

  Q in class we discussed the idea that small farmers are

q. in class we discussed the idea that small farmers are sometimes price takers i.e. the price of wheat are set in the

  Payroll tax

Which of the following is a payroll tax?

  What are the profit-maximizing price and output levels

Robert’s New Way Vacuum Cleaner Company is a newly started small business that produces vacuum cleaners and belongs to a monopolistically competitive market. What are the profit-maximizing price and output levels? Explain them and calculate algebraic..

  What is probability that at least one of them is operational

The probability a HP network server is down is .048. If you have three independent servers, what is the probability that at least one of them is operational?

  Money supply-money demand and the interest rate

There has been a monetary expansion of Rmb2.5tn ($380bn). What is the relationship between money supply, money demand and the interest rate? With the use of diagrams explain and illustrate the effects of quantitative easing on consumption and investm..

  Overall result for equilibrium price and quantity

Given the market for corn in equilibrium, show the effect on price and quantity of the following simultaneous occurrences: Good weather results in a 10% increase in the harvest of corn.

  Describe a shift of the aggregate demand curve

Describe whether each of the following would cause a shift of the aggregate demand curve, a shift of the aggregate supply curve, neither, or both.

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!

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