What is the total supply of the fringe

Assignment Help Business Economics
Reference no: EM131006316

An industry consists of a dominant firm with costs C(Qd) = Qd and 8 identical fringe firms, each with costs c(q) = 1 + q^2. Market demand is Q = 20 - p.

1. What is the supply schedule for a fringe firm in the long run? Sketch the supply. (You would need MC and AC.)

2. What is the total supply of the fringe?

3. Derive the residual demand for the dominant firm. Sketch the demand, supply of the fringe, and the residual demand.

4. Suppose, the dominant firm chooses to allow fringe to produce. What are the equilibrium price and output of each of the firms?

Reference no: EM131006316

Questions Cloud

Prepare the journal entry to record revenue : Prepare the journal entry to record revenue at the effective interest rate on December 31, the second interest payment date.
What annual rate of return is the investment offering : You are told that if you invest $11,000 per year for 23 years (all payments made at the end of each year) you will have accumulated $366,000 at the end of the period. What annual rate of return is the investment offering?
How much heater power peis required when desired dryer air : .If the convection heat transfer coefficient between the air and the exposed switch surface of 30 mm2 is 25 W/m2 .K, how much heater power Peis required when the desired dryer air temperature is T8 = 50°C?
Unemployment benefits should effect the wage accepted : In a world of job-finding and search, unemployment benefits should effect the wage accepted, but not the length of time spent searching for a job. The number of monthly separations between workers and firms is about 200,000, equal to a decent month’s..
What is the total supply of the fringe : An industry consists of a dominant firm with costs C(Qd) = Qd and 8 identical fringe firms, each with costs c(q) = 1 + q^2. Market demand is Q = 20 - p. What is the supply schedule for a fringe firm in the long run? Sketch the supply. (You would need..
Problem regarding the management information system : Suppose that you have to develop a conceptual model for your university's library management information system. Discuss how you would gather requirements for this system.
Explain what is a stack and different operations & pointers : Explain what is a Stack and different operations & pointers associated with stack. Then write a program to implement stack as an array of 5 integers.
Primary key for this entity : Attributes for a book include book identification number, book title, author, ISBN, publisher, edition, and stock. Identify the primary key for this entity. What attributes would be associated with other entities and used as foreign keys?
What if the real demand increases permanently : Suppose that the monetary authority wants to keep the nominal interest rate, i, constant. Assume that the real interest rate, r, is fixed. However, the real demand for money, M^(d)/P shifts around a great deal. How should the monetary authority vary ..

Reviews

Write a Review

 

Business Economics Questions & Answers

  Floods in the midwest substantially reduce food production

Suppose that droughts in the Southeast and floods in the Midwest substantially reduce food production in the United States. Use the aggregate demand–aggregate supply model to illustrate graphically the impact in the short run and the long run of this..

  Decade medical costs have increased more rapidly

Over the past decade medical costs have increased more rapidly than other prices. In order to illustrate how rising medical costs have affected consumer alternatives, let X represent the quantity of medical services, and let Y represent the quantity ..

  Explain how much does his weekly budget have to rise for hug

Derive and plot Hugo"s Engel curve for donuts. Explain how much does his weekly budget have to rise for Hugo to buy one more donut per week.

  About perfect competition

Which of the following is true about perfect competition?

  Home versus foreign countries while they remain in autarky

What is the difference between relative factor endowments and relative factor intensities?  What does the Hecksher-Ohlin theorem say about home versus foreign countries while they remain in autarky? What happened to the Leontief paradox when human ca..

  Analyze the effect on the economy in the short run

Consider the AS/AD model. Analyze the effect on the economy in the short run and in the long run after the following events: a). the Congress increases investment tax credits b). the congress decreases import tariffs. Determine in details how can mon..

  How will firms react to rising output price levels

How will firms react to rising output price levels? What reactions can they expect from their employees and suppliers over time?

  Government wants to run expansionary fiscal policy

The government wants to run expansionary fiscal policy (deficit spending) to achieve full employment. For this purpose, the government wants to provide each unemployed person with a low wage job. Calculate the amount of additional deficit spending (i..

  Realistic occurrences-might drive changes in velocity money

Suppose a (very small) country has a central bank who has issued 100m of money, where nominal output is 350m annually. How frequently is the average piece of money used? 2. Give two realistic occurrences that might drive changes in the velocity of mo..

  What is an individual depositor payoff when he withdraws

What is an individual depositor'spayoff when he withdraws at t = 2 as a function of the number of remaining depositors who withdrew at t = 1?

  Regarding how historian should chronicle a plague

What common assumptions guide the Thucydides and Procopius readings regarding how a historian should chronicle a plague? What different assumptions do they possess about both human behavior and the role divine forces play in human history? How do bot..

  Values of exchange rate in the short and long run

R = 3% (annual domestic interest rate), R* = 5% (annual foreign interest rate) E = 2 (current spot rate; expressed as the price of pound in terms of us dollar) If the domestic money supply increases by 10% and drive the interest rate down by 1% in th..

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