How can we get market equilibrium price

Reference no: EM131444837

Question: Suppose there are 10 firms producing fresh mochi ice cream in the Los Angeles area. The production function for each firm is given by Q(K, L) = K v L, the rental rate per machine is $2000 and the wage is $36. The capital for each firm is fixed at 12 in the short run. The Los Angeles demand for fresh mochi ice cream is given by QD = 1000 - 80P. Determine the quantity produced by each firm in the short run. Hint: This question asks you to put together many of the concepts from the beginning of producer theory. We have done each piece separately, and now let's figure out how they fit together. To start, we know that we could figure out how much each firm produces if we knew the market equilibrium price. How can we get market equilibrium price?

Reference no: EM131444837

Questions Cloud

What is the probability that a student : Scores on exam-2 are normally distributed with a mean of 66 and standard deviation 1.5 a) What is the probability that a student selected at random has a score below 60 on this exam?

What is the management function of controlling : Locate an example of a policy or guideline from an external source to a healthcare organization. Explain how this policy or guideline may be a constraint to a healthcare organization's planning, or how it may shape the healthcare organization's ph..

What are the null and alternate hypotheses being tested : A local paper believes that over 40% of all residents read its newspapers. In a random sample of 200 residents, 55% state that they read the paper. What are the null and alternate hypotheses being tested?

Create a presentation discussing your cultural background : Create PowerPoint presentation discussing your cultural background (in addition, you should include a title slide and reference slide in your presentation). When discussing your culture, consider components of yourself such as race, ethnicity, rel..

How can we get market equilibrium price : Suppose there are 10 firms producing fresh mochi ice cream in the Los Angeles area. The production function for each firm is given by Q(K, L) = K v L, the rental rate per machine is $2000 and the wage is $36.

How and why stars die and what remains after a star dies : Discuss how and why stars die and what remains after a star dies? The depth of the research should go well beyound what can be found in the astronomy textbook.

State four issues facing school health advocates : What are some of the ways in which diseases and health problems are classified in community health?State four issues facing school health advocates and explain why they are issues? Contrast the terms acute disease and chronic disease. Provide three e..

Solve the firm supply curve : Suppose that the market for televisions is perfectly competitive and has 10 producers whose total cost curves are given by T C(Q) = 1 3 Q 3 - 10Q 2 + 150Q + 100 where Q is the quantity of televisions produced (in thousands per day).

How many books does it expect to sell at a discount : A publisher sells books to Barnes & Noble at $12 each. The marginal production cost for the publisher is $1 per book. How many books should Barnes & Noble order? What is its expected profit? How many books does it expect to sell at a discount

User Account

All Pages