What is the equilibrium price and quantity of pizza

Assignment Help Econometrics

Reference no: EM13243511

Suppose that on a Saturday night there are 20 people who'd eachlike pizza. Each person's willingness to pay for pizza is given bythe equation W2Pi=10-Qi, where W2Pi is the maximum amount person iis willing to pay for pizza number Qi (eg, the person is willing topay $9 for the first pizza, $8 for the second, etc.). There are 10stores that will deliver a pizza. Each store has the followingtotal cost equation: TCj=16+Qj*Qj, where Qj is the number of pizzasproduced by firm j and Qj*Qj means Qj squared. The correspondingmarginal cost equation is MCj=2*Qj. You may assume the market isperfectly competitive. Please answer the followingquestions.

Derive the demand curve for a typical individual and the supplycurve for a typical firm.
Derive the market demand and supply curves.
What is the equilibrium price and quantity of pizza?
How many pizzas does each person buy? How much consumer surplusdoes each person receive?
How many pizzas does each firm produce? How much profit doeseach firm earn?

Reference no: EM13243511

Questions Cloud

Compute the density of a neutron : Neutron stars are believed to be composed of solid nuclear matter, primarily neutrons.If the radius of a neutron is 1.0 × 10-13 cm, calculate the density of a neutron in g/cm3. (volume of a sphere = ) Assuming that a neutron star has the same dens..

Explain carbon monoxide are needed to produce hydrogen : How many moles of carbon monoxide are needed to produce 48.0 L of hydrogen gas according to the following reaction at 0 C and 1 atm carbon monoxide (g) + water (l) ------carbon dioxide (g) + hydrogen (g)

The average fixed cost function is monotonically : The average fixed cost function is monotonically decreasing.The marginal cost function intersects the average fixed cost function where the average variable cost function is a minimum.

Determine the length of the wire from which the coil is made : A generator uses a coil that has 390 turns and a 0.65-T magnetic field. The frequency of this generator is 60.0 Hz, determine the length of the wire from which the coil is made

What is the equilibrium price and quantity of pizza : Suppose that on a Saturday night there are 20 people who'd eachlike pizza. Each person's willingness to pay for pizza is given bythe equation W2Pi=10-Qi, where W2Pi is the maximum amount person iis willing to pay for pizza number Qi

Find the angle of refraction : A light ray propagates in a material with index of refraction 1.13, strikes an interface, and passes into a material whose index of refraction is 1.41, Find the angle of refraction

Would you suggest a bigger swing either way : If we were to evaluate the "best-case scenario" from anefficiency standpoint of public-private partnerships, what would bea reasonable breakdown between private sector vs. public sectorspending for an increment of $1.

Descibe the equilibrium in the market for funds : suppose that consumers suddenlywanted to increase their spending, and decrease their savings.Desrive what will happen to output, consumption, governmentspending, taxes, investment and the real interest rate.

What is the difference in travel time for light : On the Moon's surface, lunar astronauts placed a corner reflector, off which a laser beam is periodically reflected, What is the difference in travel time for light that travels only through space to the moon and back and light that travels through ..

User Account

All Pages