What is the market clearing price

Assignment Help Business Economics
Reference no: EM131438992

United States production of USB flash drives is dominated by two firms, Lexarand Corsair. Both firms have a production cost of C(q) = 100 + q2(where q is in millions).They face stiff competition from ten Chinese producers. The Chinese firms each have a costof C(q) = 20q, but their production capacity is limited to 2 million units each, q = 2, or20 million total. Demand for USB flash drives in the US is determined by the functionD(p) = 50 - p.

Assume that Lexar and Corsair act as perfectly competitive firms and that Chinesegoods flow freely into the United States. Draw the aggregate (e.g. including all firms)supply curve for this industry in the space below. What is the market clearing price?

Reference no: EM131438992

Questions Cloud

How effectively they can be used to cope with the event : Which of the following cultural adaptations might produce a culture that would be described as a "mosaic"?The segregation practiced in areas of the United States until the 1960s as well as apartheid, that was policy in South Africa until recent tim..
What is the elasticity of supply : The equation for a supply curve is . What is the elasticity of supply as price rises from 3 to 4? What is the elasticity of supply as the price rises from 7 to 8? Would you expect these answers to be the same? Why/ why not? (Taylor & Greenlaw, 201..
Difference between recessionary gap and inflationary gap : Explain the difference between recessionary gap and inflationary gap. Discuss how a "conservative" and a "liberal" might differ in the types of policies they advocate to counteract a recessionary gap
How do you determine if a utility function is homothetic : How do you determine if a utility function is homothetic? I understand that definitions say that if the MRS depends only on the ratio of the two goods, then the utility function is homothetic. Yet I have trouble understanding how to actually apply..
What is the market clearing price : Assume that Lexar and Corsair act as perfectly competitive firms and that Chinesegoods flow freely into the United States. Draw the aggregate (e.g. including all firms)supply curve for this industry in the space below. What is the market clearing ..
Persuasion to persuade consumers about their brands : This concept relates to instrumental conditioning and the fact that each time a behavior occurs it is reinforced. When it comes to purchases that are high involvement purchases, marketers should use the ____ to persuasion to persuade consumers about ..
Resulting full economic price : Suppose market demand and supply are given by Qd = 100-2P and Qs =5+3P. If a price ceiling of $15 is imposed, what will be the resulting full economic price?
Wirte a research paper on a topic of psychopharmacology : Throughout this course, you will write a research paper on a topic related to psychopharmacology and addictions.First, choose a topic you are interested in for your research paper. The topic can be from any topic covered in the course.Submit your ..
Write an essay on the lunch box movie : Watch movie " The Lunch Box" and write a 500 words essay about this movie and focus on the culture elements.

Reviews

Write a Review

 

Business Economics Questions & Answers

  The demand curve for mcdonalds hamburgers

the demand curve to which the result pertains (it is: “the demand curve for McDonald’s hamburgers”). whether the result involves “moving along” the demand curve or “shifting” the demand curve. What happens to the demand for McDonald’s hamburgers when..

  Stakeholder influences and interconnections

Briefly describe what globalization means to you, to your company or organization, and to Canada using the principles of the Circle of Reflection. List influences that you believe it will have on stakeholders.

  How have laws such as americans with disabilities act

Based on the readings, how have laws such as the Americans with Disabilities Act (ADA) and the ADA Amendments Act (ADAAA), Civil Rights Acts, influenced the perception you and others have in relationship to diversity?

  What is the present value equivalent

Lucas saved his tin foil for over 80 years, and just sold his collection to "Believe it or not" for $25,000,000. Way to go, Lucas! The "Believe it or not" organization will pay Lucas his money in 25 annual installments of $1,000,000 each, with the fi..

  How will it influence the deficit during next two decades

How did the Social Security system influence the size of budget deficit during 1985-2010? How will it influence the deficit during the next two decades? Why or why not?

  Interconnectedness and complexity

Define the concepts of interconnectedness and complexity as it relates to urban planning. Why are these two concepts so important to urban planning? Explain what Woodrow Wilson (1887) meant when he claimed that politics and administration should be c..

  An e-business analysis of ebay

An e-Business Analysis of Ebay.”The goal in writing the Final Paper is to demonstrate an ability to analyze a company based on the concepts presented in this course. The paper will discuss the following: A thorough executive summary and an overview o..

  Spending is financed by a fresh increase in taxes equal

Suppose that marginal propensity to save is equal to 0.25, and the government increases its spending by $200 billion. This new increase in spending is financed by a fresh increase in taxes equal to $200 billion. As a result of this, GDP will:

  About economic behaviors and to economics policies

Can you relate the Classical and/or Keynesian macroeconomic models to assumptions about economic behaviors and to economics policies being implemented in the U.S. economy today?

  Determine the pre-tax accounting profit of this firm

Suppose you are considering starting your own consulting firm. You estimate if that if you did not start the firm, your starting salary at a job would be $40,000/yr. The revenues from this firm are expected to be $1,500,000. Some of the expenses you ..

  Microsofts market power over windows operating system

The source of Microsoft’s market power over the Windows operating system is a

  Competitive markets normally lead profit maximizing firms

”Most commercial fish species in nearly every ocean and sea are being rapidly depleted in what marine biologists and other specialists warn is evolving into one of the worst ecological disasters of modern times. According to the United Nations, the w..

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