Computing short run supply functions for firm-market

Reference no: EM1368029

Carolina Textiles, Inc., is a small manufacturer of cotton linen that it sells in a perfectly competitive market. Given $100,000 in fixed costs per day, the daily total cost function for this product is described by:

TC = $100,000 + $2Q + $0.0625Q^2

MC =dTC/dQ = $2 + $0.125Q

where Q is units of cotton linen produced per day. Assume that MC > AVC at every point along the firm's marginal cost curve, and that total costs include a normal profit.

A. Derive the firm's supply curve, expressing quantity as a function of price.

B. Derive the market supply curve if North Carolina Textiles is one of 1,000 competitors.

C. Calculate market supply per day at a market price of $47 per unit.

Reference no: EM1368029

Questions Cloud

Finding median by black-box worst-case linear-time algorithm : Given a black-box worst-case linear-time algorithm for ?nding median, create algorithm solving the selection problem for an arbitrary order statistic.

Pricing strategies in monopolistic competition : Describe the pricing strategies in monopolistic competition, oligopoly, and monopoly market models. Explain which market structures are price makers and price takers. What is the difference in the demand curves and why.

Find the distance travelled using the equation : A car takes 11 s to go from v = 0 to v = 80 m/s at about constant acceleration. If you wish to find the distance travelled using the equation d = 1/2 at2, what value must you use for a.

What is the velocity of the electron : A 45kg pole-vaulter running at 12 m/s vaults over the bar. Her speed when she is above the bar is 1.90m/s. Avoid air resistance and determine her height as she crosses the bar.

Computing short run supply functions for firm-market : Derive the firm's supply curve, expressing quantity as a function of price. Determine the market supply curve if North Carolina Textiles is one of 1,000 competitors. Compute market supply per day at a market price of $47 per unit.

What is average force on the child : A car moving at 10 m/s crashes into a barrier and stops in 0.50s. There is a 20kg child in the car. Suppose that the child's velocity is changed by the same amount as the cars in the same time period.

Implement change to respond rapidly to market conditions : Implementing change to respond rapidly to market conditions - What is its impact on the ability of an organization to respond rapidly to market conditions?

Write application to count number of both odd-even integers : Write application to count number of both odd and even integers of several positive integers. Fisrt value entered specifies number of values to input from user.

Calculate the effective rate of protection : Assume the free trade market price of a car is $10,000. It contains $5000 worth of steel. The importing country imposes 25 percent tariff on car imports.

User Account

All Pages