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
Tennis-Warehouse recently conducted a study of long distance phone calls made by its employees. The study showed that the length of the calls has a mean of 3.2 minutes, a standard

Positive and normative economics -introductiion Economic theory or analysis evolves from basic propositions about how individual human beings (or individual economic units) beh

After a competitive bidding process, Firm G wins a contract to collect and dispose of Firm H's hazardous waste for $1,000 per year. Firm G's labor costs are $200 per year, and beca

Overnight target rates and inflation One of the main targets of every central bank is a low and stable inflation. It's main control variable is the overnight interest rate targ

Assess the impact of transaction costs as they apply to the Coase Theorem. Evaluate how government assignment of property rights impacts free market exchanges.

The hypotheses are: The null hypothesis,  infers that a unit root exists, whereas the alternative hypothesis,  concludes that there is no root. Decision rule:

define the economic principle of opportunity cost explain whether spending 17.9% of gdp is too much or too little to spend on healthcare

the suitability of utilising a policy of tariffs and quotas given the case of perfect competition.

HOW CAN A COUNTRY MAINTAIN EQUILIBRIUM GDP IN AFOREIGN TRADE?

Derive that the complex amplitude of the double convex lens shown in the image below with focal length 1/f = (n-1 ) (1/R 1 - 1/R 2 ). Hint: we derived an plano convex lens in cla