What are the equilibrium price and quantity

Reference no: EM13741890

1. Market demand for a certain commodity is QD = 12 - P, and the short-run total cost function for the firm is SRTC (Q) = Q2 + 1.

a. If the firm behaves as a perfect competitive firm, determine the equilibrium price and quantity.
b. If instead the firm behaved as a monopoly, what are the equilibrium price and quantity?
c. How much money would it require for the firm to forgo the monopoly profits and behave instead as a perfectly competitive firm?

Reference no: EM13741890

Questions Cloud

Interest rate compounded monthly for saving account : Enrico Suarez just graduated with a B.S.in engineering and landed a new job with a starting annual salary of 48,000.there are number of things that he would like to do with his new found ”wealth”. For starters, he needs to begin repaying his student ..

A business with the total cost function : Assume you are the manager of a business with the total cost function C(q)=50+5q2 and you sell your output in a competitive market at a price of p=250 dollars per unit. Then, to maximize your profit you should produce

What was the internal or external pressure caused the change : What was the internal or external pressure that caused the change. Compare the driving force for the change to the specific types of pressures noted in your reading assignments.

A royalty was for a minor or major patent : If the government could only observe prices, quantities, and royalty rates (But did not know the demand curves or the marginal cost curves), could it determine if a royalty was for a minor or major patent?

What are the equilibrium price and quantity : 1. Market demand for a certain commodity is QD = 12 - P, and the short-run total cost function for the firm is SRTC (Q) = Q2 + 1. a. If the firm behaves as a perfect competitive firm, determine the equilibrium price and quantity.b. If instead the fir..

Ethics of fixed asset accounting : You are the owner of a successful small business. You have just finished a year of large capital investments using borrowed funds. YOUR banker requires quarterly financial statements to monitor the financial health of your company.

The key concepts in economics : Apply one (1) of the following economic concepts (supply, demand, market structures, elasticity, costs of production, GDP, Unemployment, inflation, aggregate demand, and aggregate supply) to the key points that you highlighted in Question 1. Explain ..

Derive the total market demand for water : The three people in our model all have the same preferences, but each has a different income. One of them has an income of $100, another an income of $1,000, and the third has an income of $10,000. The price of water1 is $1 and the price of the compo..

Labor disputes and the sides of the bargaining : Using your personal experiences, research from the course text, and at least two outside scholarly sources, complete a two-to three-page APA style formatted paper (not including the title and reference page). In a narrative format, the paper must ..

User Account

All Pages