Find supply curve-perfect competition and entry decisions, Macroeconomics

ChoppinAxe is a small Swedish firm that produces wood planks and operates in a perfectly competitive market. Every firm in the market has the following total cost function:

C(qi)  =2304 -20qi +4qi2

where qi represents the tons of wood planks each firm i produces. ChoppinAxe and all other firms sell their products to only one buyer, IPEA, an international furniture company. IPEA's

total demand for wood planks can be described as follows:

D(p) =3448 -4p

where p is the price for a ton of wood planks. You may assume that the market is in equilibrium.

a) Find ChoppinAxe's supply curve.

b) How many tons of wood planks will ChoppinAxe sell to IPEA? At which price?

c) Repeat sub questions (a) and (b) for KindCutters, another wood planks producer present in the market.

FallingTrees is a start-up firm that is considering entering the wood planks market. Along with ChoppinAxe and KindCutters there are another 113 wood plank producers in the market.

d) Should FallingTrees enter the market? Why (not)?

Posted Date: 3/9/2013 1:27:15 AM | Location : United States







Related Discussions:- Find supply curve-perfect competition and entry decisions, Assignment Help, Ask Question on Find supply curve-perfect competition and entry decisions, Get Answer, Expert's Help, Find supply curve-perfect competition and entry decisions Discussions

Write discussion on Find supply curve-perfect competition and entry decisions
Your posts are moderated
Related Questions
Q. What is Investment demand? Investment demand  Investment I(r) is assumed to be negatively related to the real interest rate r Total dema

Need answers for the questions (Chapters 10, 11 & 12) Please see attached questions. Thanks!

how does government regulate externalies

Explain how changes in the quality of health care will influence the demand for care.

list of all theories of business cycle theories

using a graph of the classical labour market, illustrate the effects of a real wage existing in the market that is lower than the equilibruim real wage.what will eventually happen

For a single nonprofit provider, describe an output-maximizing model to predict supplier behavior.

In the view of above complications, there is a long-standing debate on whether the fiscal policy should be active or passive in nature. Note that in the Keynesian context; even a p

# ???? .. difference between gdp at market price and nnp at factor cost

#questionAssume that an economy''s GDP Y=5000. Also assume that the government runs a deficit where tax revenue T=1000 and government expendituresG= 1500. The consumption function