What is the long-run equilibrium price in this industry

Assignment Help Business Economics

Reference no: EM13984155

The global propylene industry is perfectly competitive and each producer has the marginal cost function MC=40-12q+q². The corresponding average cost function is AC=40-6q+ 1/3q² . The market demand curve for propylene is Q=2200-100P

1. What is the long-run equilibrium price in this industry?

2. At this price, how much would an individual firm produce? Explain

3. How many active producers are in the propylene market in a long-run competitve equilibrium? Explain

4. How much profit an individual producer is making? Explain

Reference no: EM13984155

Questions Cloud

Operations of labor markets are the minimum wage law : Two laws that affect the operations of labor markets are the minimum wage law and the right to work law. Who benefits and who loses from each of these laws?

Responsibility to dispose of the extrusion machine : Your company has a customer who is shutting down a production line, and it is your responsibility to dispose of the extrusion machine. The company could keep it in inventory for possible future product and estimates that the reservation value is $ 25..

What should the manufacturer do to stop losing money : In the late 1990s, car leasing was very popular in the United States. A customer would lease a car from the manufacturer for a set term, usually two years, and then have the option of keeping the car. Why was the manufacturer losing money on this pro..

Bill expects the inflation rate : Bill expects the inflation rate to be 4% per year over the next 5 years and Bill just borrowed $25,000 on a fixed interest rate loan over 5 years at an interest rate of 7.5% to buy a car. It turns out, however, that the inflation rate each year is no..

What is the long-run equilibrium price in this industry : The global propylene industry is perfectly competitive and each producer has the marginal cost function MC=40-12q+q2. The corresponding average cost function is AC=40-6q+ 1/3q2 . The market demand curve for propylene is Q=2200-100P. What is the long-..

Simultaneously achieve economic growth-reduced inflation : If you wanted to simultaneously achieve economic growth, reduced inflation, and increased employment would you prefer a) an increase in AD - shift to the right; or b) an increase in AS - shift to the right? Justify your answer by explaining how each ..

Probability of being both short haired-working at small firm : Suppose there are two types of law school students: short haired and long haired. Additionally, law students generally choose between two types of firms when they graduate: big and small. Suppose the probability of being short haired is .8, and a sho..

Dollar retains its dominant role in global economy : Can you identify the consequences of a strong dollar or a weak dollar in the United States? Which direction do you prefer for the overall health of the American economy? Should the U.S. take measure to ensure that the dollar retains its dominant role..

Trade balance and the equilibrium exchange rate : In this economy, solve for national saving, investment, the trade balance, and the Equilibrium exchange rate. Suppose now that G rises to 1,250. Solve for national saving, investment, the trade balance, and the equilibrium exchange rate. Explain what..

User Account

All Pages