Short run and long run equilibrium in fishing rod market

Reference no: EM1317210

Continue with the fishing rod market. Assume that the minimum long-run average cost of making fishing rods (including an allowance for normal profit) is $20 at an output per firm of 5,000 fishing rods and that market demand for these fishing rods is P = 50 - Q/20,000.

a) How would you predict that the short-run equilibrium that you have identified in question 1 will change? Illustrate your answer using appropriate diagrams.

b) What will be the long-run equilibrium number of fishing rod manufacturers?

Reference no: EM1317210

Questions Cloud

Calculating marginal sales per day : Tables John Walker is a regional sales representative for Jiffy Mowers Inc. and sells lawn mowers to stores in the Tri State area. Construct a table showing Walkers marginal sales per day in each state.

Computing predicative value negative of ela : With this information, by constructing a 2 by 2 table, compute the predicative value positive and predictive value negative of the ELA in hypothetical population of 1000000 blood donors.

Developing the c++ code : Write down a C++ code in order to execute the following application: If you press on “Sum” button, summation of all the multiple of 4 numbers greater than 0 and less than 100 will be found and the result will be displayed in result edit box.

Design and build a prototype data warehouse : Design and build a prototype data warehouse using the data on Spend over £25,000 in the Science and Technology Facilities Council

Short run and long run equilibrium in fishing rod market : How would you predict that the short-run equilibrium that you have identified in question 1 will change? Illustrate your answer using appropriate diagrams. What will be the long-run equilibrium number of fishing rod manufacturers?

Determining probability that computer will fail : Determine the probability that computer will fail within 12 months?

Developing an eer schema for database application : Develop an EER schema for a database application which you are interested in. State all the constraints which should hold on the database.

Shut down condition for a competitive firm-norm fish : orm Fish makes cheap fishing rods and operates in a competitive market. The company has a fixed cost of $20,000 per period. In addition the firm incurs production or variable costs depending on its output as follows:

Developing the lan network for a company : You have been asked to develop a LAN with operation over the distance of around 100m. Compare and contrast the twisted pair cable, fiber-optics, and wireless for this application.

User Account

All Pages