Determine what is the pure competition equilibrium

Reference no: EM13239742

There are two firms in an industry, each owning one plant. Firm 1 has supply function P = 10 + 0.01Q1 (which is the marginal cost of its plant), and Firm 2 has supply function 0.005Q2 + 0.00001Q22 (the marginal cost of its plant).

A draw the market supply curve

B if the demand curve is 200 - 0.005Q, what is the pure competition equilibrium? What is the consumer surplus, total producer surplus, and total social welfare? What is the amount that each firm produces, and each firm's profit and marginal cost?

c imagine that the two firms merge into one firm, and then act as a monopoly (setting the price at the profit maximizing level)? Calculate the marginal revenue for the joint firm, price, and the marginal cost for each plant. What then are the consumer surplus, total producer surplus, and total social welfare?

Reference no: EM13239742

Questions Cloud

Find gauge pressure at this depth : The depth of the Pacific Ocean in the Mariana Trench is 36,198 ft. What is the gauge pressure at this depth

Define what is the maximum concentration : What is the maximum concentration, in mol/L and mg/L, of Cu^2+ and Zn^2+ in a solution that contains both ions if the pH is (a) 10.00, (b) 11.00, (c) 12.00

Determine how much weight is saved : A certain part of an aircraft engine has a volume of 2.6 ft3. Determine how much weight is saved by using aluminum instead of nickel

A lead and iron are common alloying elements found in brass : Lead and iron are common alloying elements found in brass. Would the presence of these elements complicate the analysis of brass

Determine what is the pure competition equilibrium : There are two firms in an industry, each owning one plant. Firm 1 has supply function P = 10 + 0.01Q1 (which is the marginal cost of its plant), and Firm 2 has supply function 0.005Q2 + 0.00001Q22

What is the accounting cost function for the business : Additional projected costs are $1,000 for insurance and $3.20 per unit for materials and supplies. Their fruit smoothies would be priced at $5 per unit. A.) What is the accounting cost function for this business

Find the statues weight density : A small statue is recovered in an archaeological dig. Its weight is measured to be 2.1 lb and its volume 0.06 ft3, What is the statue's weight density

Explain what was the molar absorptivity of the dye : A solution of a dye in a 0.80 cm cuvette of concentration 1.25 x 10^-3 M had an absorbance of 0.115 at a particular wavelength. What was the molar absorptivity of the dye

Find the subgame perfect nash equilibrium using induction : There are 6 tokens on the table. Two players alternate removing some of the tokens. In each move any player can either remove exactly one or exactly two tokens. Whoever removes the last token is the winner

User Account

All Pages