What is the industry long-run supply schedule

Assignment Help Business Economics

Reference no: EM131108052

A perfectly competitive painted necktie industry has a large number of potential entrants. Each firm has an identical cost structure such that long-run average cost is minimized at an output of 20 units (Q(I)=20). The minimum average cost is $10 per unit. Total market demand is given by Q(d) = 1500-50P

1. What is the industry's long-run supply schedule?

2. What is the long-run equilibrium price (P*)? The total industry output (Q*)? The output of each firm Q*(I)? The number of firms/ The profits of each firms?

3. The short-run total cost curve associated with each firm's long-run equilibrium output is given by STC = 0.5(Q^2) - 10Q + 200 where SMC = q-10. Calculate the short run average. At what necktie output level does short-run average cost reach a minimum?

4. Calculate the short-run supply curve for each firm and the industry short-run supply curve

Reference no: EM131108052

Questions Cloud

When confronted with a natural monopoly : When confronted with a natural monopoly that restricts output and charges monopoly prices, the two methods that government have for promoting better outcome are:

The evolution of easy jet online revenue contribution : EasyJet was founded by Stelios Haji-Ioannou, the son of a Greek shipping tycoon who reputedly used to 'hate the Internet'. In the mid 1990s Haji-Ioannou reportedly denounced the Internet as something 'for nerds', and swore that it wouldn't do anythin..

How many options were exercised in 2007 : What number of diluted weighted-average common shares outstanding was used by P&G in computing earnings per share for 2007, 2006, and 2005 what was P&G's diluted earnings per share in 2007, 2006, and 2005?

Edgeworth box-find the contract curve : There are only two consumers, Bill and Ted, and two goods, apple and bananas. Bill and Ted like apples and oranges. Bill is always willing to substitute 1 apple for 3 bananas. So Bill's utility function is U(b) = 3A + B. Ted is always willing to subs..

What is the industry long-run supply schedule : A perfectly competitive painted necktie industry has a large number of potential entrants. Each firm has an identical cost structure such that long-run average cost is minimized at an output of 20 units (Q(I)=20). What is the industry's long-run supp..

Why they are included in the eps calculation, : The common stock sold at an average market price of $25 per share during the period. Also outstanding were 30,000 warrants that could be exercised to purchase one share of common stock at $30 per warrant.

Calculate the irr for each of the following projects : Calculate the IRR for each of the following projects and recommend the best project based on this measure. Project T-Shirt requires an initial investment of $15,000 and generates cash inflows of $8,000 per year for 4 years.

Productive in all sectors of its economy than mexico : Explain why Mexico and the United States enjoy a flourishing trade even though the latter is more productive in all sectors of its economy than Mexico.

Market is characterized by demand curve : A market is characterized by a demand curve that can be expressed as P = 3000 – 10 Q. Each of the two identical firms currently serving the market has a total cost function of the form C = 250 q. There are no fixed costs. If the 2 duopolists behave a..

User Account

All Pages