How many firms will there be in the kite industry

Assignment Help Microeconomics
Reference no: EM131167145

Kites are manufactured by identical firms. Each firm's long-run average and marginal cost of production are given by:

AC = Q + 100/Q and MC = 2Q

where Q is the number of kites produced.

a. In long-run equilibrium, how many kites will each firm produce? Describe the long-run supply curve for kites.

b. Suppose that the demand for kites is given by the formula

Q = 8000 - 50P

where Q is the quantity demanded and P is the price. How many kites will be sold? How many firms will there be in the kite industry?

c. Suppose that the demand for kites unexpectedly goes up to Q = 9000 - 50P. In the short run, it is impossible to manufacture any more kites than those already in existence. What will the price of kites be? How much profit will each kitemaker earn?

d. In the long run, what will the price of kites be? How many new firms will enter the kite-making industry? How much profit will they earn?

Reference no: EM131167145

Questions Cloud

Understand that piracy of copyrighted works : Most people understand that piracy of copyrighted works is illegal. But, many do not understand what piracy is or whether their role in the act of downloading pirated materials is a crime.
What is the least number of colors needed to color a map : Consider the vertices representingAlaska and Hawaii as isolated vertices.
Construct a graph showing the probability of lot acceptance : Find the probability of accepting a lot as a function of the actual fraction of defective chips.- Construct a graph showing the probability of lot acceptance for each of the lot defective fractions,
Webcam or computer microphone to spy on them : What does the Law say about using someone's Webcam or Computer Microphone to spy on them?
How many firms will there be in the kite industry : Suppose that the demand for kites is given by the formula Q = 8000 - 50P, where Q is the quantity demanded and P is the price. How many kites will be sold? How many firms will there be in the kite industry
Against net neutrality : 2. Discuss whether or not you are for or against Net Neutrality. Support your position.
Discuss the behavior of given function : Graph this probability versus n for n equal to multiples of 50 up to 1000. - Discuss the behavior of this function and why it behaves as it does.
Create for managers approving new access : For the given scenario, recommend two policies that you would create for managers approving new access and for monitoring that access. In recommending these policies, make sure they are appropriate for the employees and are in accordance with the ..
Determine whether an undirected graph is bipartite : How can you determine whether an undirected graph is bipartite?

Reviews

Write a Review

Microeconomics Questions & Answers

  Production function exhibit constant

Production function exhibit constant, increasing, or decreasing returns to scale?

  Definition and explanation of the gdp and cpi

Definition and explanation of the indices, e.g., GDP, CPI, and other economic calculations

  Eyesolutions is the proud creator of eyetab

EyeSolutions is the proud creator of eyeTab, a leading eReader. Market research shows that there are two types of consumers: 2 million avid readers, whose willingness to pay is $350; and 3 million occasional readers, whose willingness to pay is $200...

  Devise a pricing plan that would enhance profitability

BAA is a private company that operates some of the largest airports in the United Kingdom, including Heathrow and Gatwick - The additional cost BAA incurs each time one of the 90 different airlines utilizes the runway is £950 provided 70 or fewer ai..

  Introduction of the london living wage

Examine whether the introduction of the London Living Wage (LLW) has been good for London and for Londoners. Illustrate your answer using a case study focusing on one particular sector or industry.

  Sketch the supply and demand for the market for durum wheat

Sketch the supply and demand for the market for durum wheat. Sketch the demand curve facing an individual midwest wheat farmer who sells an average of 1000 bushel per year.

  Evaluate and compare the vertical restraints

Why might you expect to see flat royalty payments in home-based franchises but revenue-based royalties in franchises that operate from commercial buildings?

  The us government has gengaged in mass amounts

During the last 7 years the US government has gengaged in mass amounts of fiscal stimulus to get the economy moving. Take either the classical or Keynesian point of view on the stimulus. Support your point of view using principles of Classical or Key..

  How to observe the workers more closely at variety of tasks

Small firms can discover the abilities of their workers more quickly than large ones because they can observe the workers more closely at a variety of tasks. Does it then make sense for people with high abilities to go to small firms

  If the government regulates a monopolys price

If the government regulates a monopoly's price below the socially efficient level, then:

  Write down the normative economic statement and positive

write down the normative economic statement and positive economic statement. describe in detail write difference when

  What is the market equilibrium price

The widget industry in Springfield is competitive, with numerous buyers and sellers. Consumers don't differentiate among the various brands of widgets (no product differentiation). The industry demand curve is given by: Qd = 998 - 5Pw + 4 Y - 6Pg

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd