Marginal and average cost, Managerial Economics

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

912_aa.png

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

1607_aa.png

where Qi  represents the number of ice cream cones firm i makes. Suppose that the market is in equilibrium.

a) Derive the firms' marginal and average cost. 

b) Compute price and quantity in equilibrium.

 

 

 

Posted Date: 3/26/2013 2:51:17 AM | Location : United States







Related Discussions:- Marginal and average cost, Assignment Help, Ask Question on Marginal and average cost, Get Answer, Expert's Help, Marginal and average cost Discussions

Write discussion on Marginal and average cost
Your posts are moderated
Related Questions
what is the full concept of discounting principles of managerial economics ?

Mrs John Robinson- 'Oligopoly is market situation in between monopoly and perfect competition in which the number of sellers is more than one but is not so large that the market pr

Tomato Farm is selling tomatoes in a purely competitive market. Its output is 5000 bushels, which sell for $15 a bushel. At this level of output, the marginal cost is $15 bushel an

Question 1: Martha National County Club is a golf club in an isolated wealthy community and accepts only females as members. There are 1,000 identical female members of the club an

define scarcity and oppurtunity cost.show how these concepts are useful in managerial decision making

Real Rigidities in the Labour Market   New Keynesian  theories of the labour market help in explaining  the existence of involuntary unemployment. The theories also attempt to

Arc Elasticity Is the average elasticity between two given points on the curve, i.e. Because of the negative relationship between price and quantity demanded, pr

A firm hires two risk-neutral workers to assemble bicycles and pays $20 for each assembly.Charlie's marginal cost of allocating effort (measured in dollars) to the production proce

PRICE ELASTICITY OF SUPPLY AND THE SLOPE OF THE SLOPE CURVE For a straight line supply curve, the gradient is constant along the whole length of the curve, but elasticity

discuss baumols dynamic models