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
State the market for overnight loans Overnight interest rates are rates for loans over a single night - these are the shortest of all interest rates. During the day, banks norm

Unemployment rate (LUNEMP): A key variable to assess the performance of any economy when an economy is growing, the unemployment rate will fall as job creation increases and in

Trends of Trade Shares: India's share in total world exports in 1950 was 1.85 percent and the share in total world imports was 1.7 1 percent. The share of both exports and imp

Q1. The poorest countries in the world have a per capita income of about $600 today. We can reasonably assume that it is nearly impossible to live on an income below half this leve

Ask question #MinDerive the isoprofit function ?imum 100 words accepted#

When is a balanced budget presented?

The cash flows (CF t ) associated with an investment are listed below (assume that each cash flow occurs at the beginning of each year):                         CF 0   = -200

Q. Consumption function in the IS-LM model? The consumption function will be the same as in cross model, consumption will depend positively on Y. In the classical model, consum

A farmer grows a bushel of wheat & sells it to a miller for Rs. 1.00. The miller turns the wheat into flour & then sells the flour to a baker for RS. 3.00. The baker uses the f

The events X and Y are mutually exclusive. Suppose P(X)=.05 and P(Y) =.02. What is the probability of either X or Y occurring? What is not probability of X nor Y happens?