+1-415-670-9189
info@expertsmind.com
Estimate equilibrium price and quantity
Course:- Microeconomics
Reference No.:- EM1374411




Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Microeconomics

In 2001, the box industry was perfectly competitive. The lowest point on long run average cost curve of each of identical box producers was dollar four, and this minimum point occurred at an output of 1,000 boxes every month. The market demand curve for boxes was

Qd = 140,000 - 10,000P

where P is the price of a box (in dollars per box) and Qd is the quantity of boxes demanded per month. The market supply curve for boxes was

Qs = 80,000 + 5,000P

where Qs is the quantity of boxes supplied per month.

[A] Find the equilibrium price of a box? Is this the long-run equilibrium price?

[B] How many firms are in this industry when it is in long-run equilibrium?

 




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Microeconomics) Materials
Atlas Transportation is considering installing temperature logger in all its refrigerated trucks for monitoring temperatures during transit. If the systems will reduce insuran
1. The Winter City Ski Resort caters to both out-of-town skiers and local skiers. The demandfor ski tickets for each market segment is independent of the other market segment.
Suppose that the demand curve (hundreds) for apples is given by Qd = 140 - 5P, where Qd is the number of pounds demanded per year and p is the price per pound. The supply of
Discuss and explain one factor of how government involvement in marketplace can impact or not impact the economy. Give a real life example of this factor at work.
Yet we saw in this chapter that the United States is a substantial net debtor to foreigners. How, then, is it possible that the United States received more foreign asset inc
Consider the argument that government spending and borrowing harms long-run economic growth. A. Is this most likely to happen if the private spending crowded out is consumptio
In 2010 the Financial Times reported that the Mexican Finance minister called for a third change to the country's taxes in as many years. (Financial Times, March 19, 2010)
Bobby's Burgers is a large restaurant chain with nearly 10,000 units worldwide. It is experiencing incentive problems among its outlet managers. The managers are not working v