What are the equlibrium quantities

Reference no: EM13176752

Consider a perfectly competitive market with 10 firms; Firm 1, Firm 2...Firm 10. Firm 1 through Firm 9 have the same cost function given by C(qi)=2q^2,

where q is the quantity produced by firm i. Firm 10 has a different cost function C(q10)= 3q^2.Let Q represent the aggregate output of all firms, Q= \(\sum_{i}^{10}qi\)

Consumers' aggregate inverse demand function is given by P(Q)=90-12Q

1. T/F Firms have an increasing returns to scale technology. Explain

2.Solve for the equilibrium price and quantities (P, q1, q2 ..... q10).What is the equilibrium price?

a-1

b-4

c-3

d-10

e-9

f-1/2

3.What are the equlibrium quantities (q1, q2... ,q10)?.

A-q1, q2... ,q10 = 2

B-q1, q2,...,q9= 2 q10=1/2

c-q1, q2,.... ,q9= 3/2 q10=1/2

d-q1, q2, ... ,q9, q10= 3/2

e- q1, q2, ... ,q9= 3/4 q10=1/2

f-q1, q2,.... ,q9= 3 q10=1/2

g-none of the above

4. Does Firm 10 produce at all in equillibrium? Explain why?

Reference no: EM13176752

Questions Cloud

Calculate nominal gdp using the expenditure approach : Consider an economy that produces only two goods: fresh apricots and dried apricots. In this economy, the technology of producing dried apricots is to place fresh apricots on special racks and allow them to dry in the sun. Fannie's Farms is the on..

Explain the appropriate number of significant figures : the appropriate number of significant figures. Use leading zeros if appropriate.

Record the transactions in the general journal : Record the transactions in the general journal and prepare the stockholders' equity section of the KCAS-TV balance sheet at September 30, 2012.

State what is the age of a mineral mass ratio : Each 1.000 g of 238U that decays eventually produces 0.866 g of 206Pb. If the half-life of 238U is 4.468 x 10^9 years, what is the age of a mineral that has a 238U/206Pb mass ratio of 2.00?

What are the equlibrium quantities : Consider a perfectly competitive market with 10 firms; Firm 1, Firm 2...Firm 10. Firm 1 through Firm 9 have the same cost function given by C(qi)=2q^2, where q is the quantity produced by firm i. Firm 10 has a different cost function C(q10)= 3q^2..

Discuss how primes net income could decline : Discuss how Prime's net income could decline between Year 6 and Year 8 while its cash flow from operations increased and discuss how Prime's net income could increase between Year 8 and Year 10 while its cash flow from operations decreased.

State what is the molarity of your hcl solution : What is the molarity of your HCl solution if it take 35.25 mL to reach the second equivalence point of a titration against 0.2225 grams of standard sodium carbonate?

State how many moles of naphthalene are required to react : How many moles of naphthalene are required to react stoichiometrically with 1.24 moles of 2-bromo-2-methylpropane to produce 1.24 moles

State what is true about ideal gas particles : What is true about ideal gas particles? a. Particles interact via the Lennard-Jones potential b. Particle volume is approximated as a sphere with diameter b

User Account

All Pages