Discuss the individual firm marginal cost-averaged cost

Assignment Help Business Economics

Reference no: EM1355092

Consider the Perfectly Competitive Market for dog shampoo which, in the short run, is served by 100 identical firms. Each of these firms faces the following total cost function C(q) = q2+ 8q+36.

Describe the individual firm's Marginal Cost, Averaged Cost and Average Variable Cost functions, and use this to calculate industry supply.

Given that the industry demand curve is given by Q(p) = 1600 - 50p, calculate the market clearing price and output.

Is this market in long-run equilibrium? Why or why not?

A market is supplied competitively by 50 low-cost firms, each with cost curve Cl(q)=350+2q+q2 and n high-cost firms, each with cost curve Ch(q)=400+2q+q2. Market demand is Q=2500-10p. If none of the high-cost firms makes a positive profit, how large is n? How much profit do the low-cost firms make?

List the assumptions of the perfect competition model and describe how the voilation of each assumption might move an industry away from maximum efficiency and/or the price away from marginal cost.

Reference no: EM1355092

Questions Cloud

How much time is required for the bullet to reach the target : The electric field at point P just outside the outer surface of a hollow spherical conductor of inner radius 15 cm and outer radius 31 cm has magnitude 465 N/C and is directed outward.

Audit-tolerable deviation rate : When assessing the tolerable deviation rate, the auditor should consider that, while deviations from control procedures increase the risk of material misstatements, such deviations do not necessarily result in misstatements.

Development of psychological testing : Select a significant event in the development of psychological testing, such as the Chinese use of essay exams for civil service selection

Question about organization development : Question about Organization Development - What would you do as a leader now to seek out where, if and how organization development is being used?

Discuss the individual firm marginal cost-averaged cost : Discuss the individual firm's Marginal Cost, Averaged Cost and Average Variable Cost functions, and use this to calculate industry supply.

Explain organizational culture and organizational climate : Explain some differences between organizational culture and organizational climate and Give at least one example of some aspect of each in a place where you have worked or observed.

Cash flows from operating activities section : Dan consider to fund his individual retirement account with the maximum contribution of 2,000 dollar at the end of each year for the next ten years.

Java application to generate three-digit random number : Write a Java application that generates a 3-digit random number 100 times. Display the output for each of the generated numbers and the sum of all 100 numbers.

What is the momentum of the car : A 23 bullet traveling 245 penetrates a 3.0 block of wood and emerges cleanly at 195 .If the block is stationary on a frictionless surface when hit, how fast does it move after the bullet emerges.

User Account

All Pages