User Account

All Pages

Marginal cost curve of a typical firm

Assignment Help Business Economics
Reference no: EM13903498

Widgets are provided by a competitive constant-cost industry where each firm has fixed costs of $30. The following chart shows the industry-wide demand curve and the marginal cost curve of a typical firm:

Industry-Wide Demand// Firm's Marginal Cost Curve
Price- Quantity / Quantity- Marginal Cost

$5 - 1500 / 1 - $5
10 - 1200 / 2 - 10
15 - 900 / 3 - 15
20 - 600 / 4 - 20
25 - 300 / 5 - 25
30 - 200 / 6 - 30
35 - 140/ 7 - 35
40 - 50 / 8 - 40

a.What is the price of a widget?

b. How many firms are in the industry? For the remaining four parts of this question, assume that the government imposes an excise tax of $15 per widget.

c. In the short run, what is the new price of widgets?

d. In the short run, how many firms leave the industry?

e. In the long run, what is the new price of widgets?

f. In the long run, how many firms leave the industry?

Reference no: EM13903498

Questions Cloud

Conversion of farmland from agriculture to industry : Two traditional economies are trying to industrialize. The leaders of the first favor a command economic system. The leaders of the second want to try more free market-based policies. Which of the following actions would likely occur in one but no..
Analyse financial statements using relevant techniques : Calculate the net present values, payback period ,accounting rate of return and IRR of each of the proposed investments and recommend with justifications which of the two investments, if any, should be selected - Analyse financial statements using ..
How has globalization been good or bad for the post 1945 : How has globalization been good or bad for the post 1945
What does the price elasticity of demand measure : What does the price elasticity of demand measure? What is inelastic demand? What is elastic demand? According to the economists' approach to setting prices, the profit-maximizing price should depend on what two factors?
Marginal cost curve of a typical firm : Widgets are provided by a competitive constant-cost industry where each firm has fixed costs of $30. The following chart shows the industry-wide demand curve and the marginal cost curve of a typical firm:
Compute the linear trend equation for the deseasonalize data : Deseasonalize the time series. Compute the linear trend equation for the deseasonalize data and forecast sales for the first quarter of year 4. Be sure to reseasonalize your forecast
Describe the collapse of the roman empire : Describe the Collapse of the Roman Empire
What assumption does the absorption costing approach make : When the absorption costing approach to cost-plus pricing is used, what is the markup supposed to cover? What assumption does the absorption costing approach make about how consumers react to prices?
Estimate the profit-maximizing price for ice cream cones : Did Kimio make more money selling the cones for $1.79 or for $1.39? Estimate the price elasticity of demand for the ice cream cones. Estimate the profit-maximizing price for ice cream cones.

Reviews

Write a Review

Business Economics Questions & Answers

  Policies are consistent with goal of increasing productivity

Which of the following policies are consistent with the goal of increasing productivity and growth in developing countries?

  Pressure on the equilibrium price for each good in bold font

Decide whether each scenario would lead to upward or downward pressure on the equilibrium price for each good in bold font.

  What is slurping turtles short run total cost function

Suppose production function for noodle soup at Slurping Turtle is Q =4k^1/2 L^1/2. They currently own 4 units of capital and are not able to change this during the short run. The rental rate of capital is $10 and the wage rate is $20. What is Slurpin..

  Xpect for wealthier countries to have cleaner environments

If summer's supposition is correct, then we should expect for wealthier countries to have cleaner environments other things equal.

  The flour is used to bake bread that sells to consumers

We grow wheat that sells for $40,000. The wheat is milled into flour that sells for $55,000. The flour is used to bake bread that sells to consumers for $90,000. Typically, a period where GDP is falling for at least 6 months is considered to be:

  Use of calculus and the idea of profit-maximization

One of the central ideas taught in econonimics is that fixed costs are sunk costs, and that fixed cost are irrelevant to current decision making. Show why this true through the use of calculus and the idea of profit-maximization.

  Financial arm-determine the interest rate

Sam bought a car for $40,000 at “0” percent for 60 months. The financing was done through the financial arm of the car company. If he had paid cash for the car he could have gotten the car for $34,000. Determine the interest rate that he is paying on..

  What about for computers

Suppose that in a year an American worker can produce 100 shirts or 20 computers and a Chinese worker can produce 100 shirts or 10 computers. Who has the comparative advantage in the production of shirts? What about for computers?

  What is the capitalized equivalent amount worth

What is the capitalized equivalent amount worth, at 8% annual interest compounded semi annually, for a present initial cost investment of $50,000, a series of semi annual positive disbursement of $5,000 that extent to infinity, and in 12 years there ..

  Rent in the market

The going rent in the market for 1-bedroom apartments in your neighborhood is $400. If the government imposes a price ceiling of $200 in this market:

  What is smallest integer price that would make a firm

What is smallest integer price that would make a firm willing to produce a positive amount. Suppose that Dent Carr's long-run total cost of repairing s cars per week.

  What causes macroeconomic instability of market capitalism

Is market capitalism necessary for freedom? Explain why or why not. Are market economies necessarily “capitalist” and are command economies necessarily “socialist”? Why or why not? What causes macroeconomic instability of market capitalism? Explain.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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