Compute price and quantity in equilibrium, Microeconomics

In the city of Gelato the market for ice cream is perfectly competitive. Aggregate demand for ice cream is:

D(p) = 1200-25p

where p is the price for one cone of ice cream. All ice cream producers in the city have the same total cost function:

C(qi) =10qi

where qi represents the number of ice cream cones firm i produces. Assume that the market is in equilibrium.

a) Derive the firms' marginal and average cost.

b) Compute price and quantity in equilibrium.

Assume that there are 50 firms present in the market.

c) Calculate the number of ice cream cones that each firm produces. Will they produce the same quantity? Why (not)?

d) In general, is it possible that a firm in a perfectly competitive market produces at a price greater than its average cost?

 

Posted Date: 3/9/2013 1:26:09 AM | Location : United States







Related Discussions:- Compute price and quantity in equilibrium, Assignment Help, Ask Question on Compute price and quantity in equilibrium, Get Answer, Expert's Help, Compute price and quantity in equilibrium Discussions

Write discussion on Compute price and quantity in equilibrium
Your posts are moderated
Related Questions
In markets, the invisible hand allocates resources efficiently a. in all cases b. when there are positive externalities, but not when there are negative externalities c. when there

write about the origin of sylos labini''s limit pricing model

my assignment is about richardian model and wanna ask you about few questions

What is Co-ordination Number? A Co-ordination Number is the total number of ligands which are attached to the central metal atom by co-ordinate bonds or number of atoms of a liga

Q. Explain about Employment Rate? Employment Rate: This measures share of working age adults who are in fact employed in a paying position. Employment rate can be a better in

Demand Function The function capturing the dependent relationship between the price people are willing to pay for products or service and other factors related to that product


Discuss how the opportunity cost principle influence a supplier''s decision to supply labour

all information about demand analysis