What is the elasticity of firm i
Course:- Microeconomics
Reference No.:- EM13850574

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

Residual Demand

1. If market demand is Q = 100 - P^2 and the supply by any given firm is q = 2P^2, then what is the residual demand of firm i if there are a total of 20 firms in this market?

2.What is the elasticity of firm i?

3.What if there was a change in the market and the total number of firms dropped to 10?

4. Is the demand elasticity of an individual firm more or less elastic than market demand elasticity,ε? What if the number of firms, n, is large as compared to small? Explain you answer



Put your comment

Ask Question & Get Answers from Experts
Browse some more (Microeconomics) Materials
Determine the impact of the increase in the price of soybeans on the rental rate of land and determine the impact of the increase in the price of soybeans on the welfare (real
Suppose that country C would be willing to export the product to A for $15 per unitwhile country B, the low-cost world producer, is willing to export at a price of $10. Simi
Raider Inc., an American importing firm anticipates an outflow of ¥893 million in 6 months. Raider's management team is worried about the course of the ¥/$ exchange rate ove
a. Demonstrate mathematically that ATC and AVC are not parallel. b. Show mathematically that when both ATC and AVC are falling, ATC falls faster than AVC, and when both are
Derive GGC's marginal revenue (MR) and marginal cost (MC) curves in each market. Show graphically GGC's demand, MR, and MC curves for each market. Derive algebraically the q
Although there is relatively little difference in the cost of producing hardcover and paperback books, these books sell for very different prices. Explain this pricing behavio
If the firm does not shut down in the short run when price equals $4, what will be the firm's production level? Calculate the firm's fixed cost and variable cost at this lev
1. It is a comon argument in the UK that soccer (football) ticket prices are 'too high'. Provide an analysis of this with respect to economic efficiency considerations as