User Account

All Pages

What is the market equilibrium price in the long run

Assignment Help Microeconomics
Reference no: EM133750257

Problem

The screw and bolt market contains many identical firms, each with a total cost function TC(q) = 400 - 5q + q 2 , marginal cost function MC(q) = - 5 + 2q , and average cost function AC(q) = 400 q - 5 + q , where q is the firm's annual output. The market demand curve for this industry is Q D = 262.5 - P 2 , Each firm in the industry is currently earning zero economic profit. How many firms are operating in this industry? What is the market equilibrium price in the long run?

Reference no: EM133750257

Questions Cloud

Calculate the potential external cost for the residents : Currently, the total value of real estate is $90 million. Calculate the potential external cost for the residents in the area of building the chemical plant.
What is critical difference in productivity : What marginal product of high school graduates was instead hammers per hour? What is critical difference in productivity at which type of worker hired changes?
Determine the firms accounting profit and economic profit : Mr. X opens a tee shirt manufacturing plant. The t-shirt company pays $50,000 in annual rent. Determine the firm's accounting profit and economic profit.
What level of output will maximize profit or minimize loss : What level of output will maximize profit or minimize loss? Calculate profit or loss for the firm in the short run.
What is the market equilibrium price in the long run : The screw and bolt market contains many identical firms. How many firms are operating in this industry? What is the market equilibrium price in the long run?
Which country has the absolute advantage in producing food : Two countries, Marland and Teckana, can produce either clothing or food. Which country has the absolute advantage in producing food? Explain.
When should paul stop eating the donuts : Paul bought a dozen donuts along with his morning coffee, and immediately started to eat them. As a rational person, when should Paul stop eating the donuts?
Are shifts shown with directional arrows : Are shifts shown with directional arrows? Did you show changes in equilibrium points by labeling new one and showing changes in levels on the axes?
How much petrol will be offered for sale by suppliers : How much petrol will be demanded by consumer at this price? How much petrol will be offered for sale by suppliers? How much petrol will actually be sold?

Reviews

Write a Review

Microeconomics Questions & Answers

  The free rider problem

Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good.

  Failure of the super committee is good thing for economy

Some commentators have argued that the failure of the “Super committee” is good thing for the economy?  Do you agree?

  Case study analysis about optimum resource allocation

Case study analysis about optimum resource allocation: -  Why might you suspect (even without evidence) that the economy might not be able to produce all the schools and clinics the Ministers want? What constraints are there on an economy's productio..

  Fixed cost and vairiable cost

Questions:  :   Which of the following are likely to be fixed costs and which variable costs for a chocolate factory over the course of a month?  Explain your choice.

  Problem - total cost, average cost, marginal cost

Problem - Total Cost, Average Cost, Marginal Cost: -  Complete the following table of costs for a firm.  (Note: enter the figures in the  MC   column  between  outputs of  0 and 1, 1 and 2, 2 and 3, etc.)

  Oligopoly and demand curve problem

Problem based on Oligopoly and demand curve,  Draw and explain the demand curve facing each firm, and given this demand curve, does this mean that firms in the jeans industry do or do not compete against one another?

  Impact of external costs on resource allocation

Explain the impact of external costs and external benefits on resource allocation;  Why are public goods not produced in sufficient quantities by private markets?  Which of the following are examples of public goods (or services)? Delete the incorrec..

  Shifts in demand and movements along the demand curve

Describe the differences between shifts in demand and movements along the demand curve. What are the main factors which can shift the demand curve? Explain why they cause the demand curve to shift. Use examples and draw graphs to support your discuss..

  Article review question

Article Review Question: Read the following excerpts from the article "Fruit, veg costs surge' by Todd, Dagwell, published in the Herald on January 25th 2011 and answer questions below:

  Long-term growth, international trade & globalization

Long-term Growth, International Trade & Globalization:- This question deals with concepts such as long-term growth, international trade and globalization. Questions related to trade deficit, trade surplus, gains from trade, an international trade sce..

  European monetary union (emu) in crisis

"Does the economic bailout of Spain and Greece spell the beginning of the end for the European Monetary Union (EMU)?"

  Development game “settlers of catan”

Read the rules of the game, the overview and the almanac for the Development Game "Settlers of Catan"

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd