Calculate firm profit-write down its short run supply curve

Assignment Help Business Economics

Reference no: EM131240709

Suppose the (short run) total cost of production for a firm is given by the equation: C(q)=8q + q^2 + 400. This implies that the marginal cost equation is MC(q) = 8 + 2q.

1. Assuming the firm is a representative firm in a competitive market, how much does the firm produce in the short run if the market price is $60? Calculate the firm's profit and write down its short run supply curve.

2. Is the above $60 the long run equilibrium price? If not, what is the long run equilibrium market price?

Reference no: EM131240709

Questions Cloud

How a pneumatic and hydraulic drawing should be laid out : How a Pneumatic and Hydraulic drawing should be laid out - Identification of symbols and numbering of symbols - produce a suitable circuit design drawing for either a pneumatic or hydraulic reversible rotary actuation system that includes speed cont..

Certain eaps more commonly offered in american corporations : Certain EAPs are more commonly offered in American corporations, because these have the goal of better contributing to the dominant issues within American culture (Waehrer, Miller, Hendrie & Galvin, 2016).

Two dimensional kinematics : Two Dimensional Kinematics: A ball is thrown will speed of 13m/s, 7m above ground. Ball B is thrown in direction of 25 degrees above horizontal and Ball A is thrown straight downward. What is the landing speed of snowball B? What is the landing sp..

Fill in the total and marginal revenue columns in the chart : If marginal cost is equal to marginal revenue at MC=MR=$20, what is the profit maximizing level of production (assuming that the firm should produce at all)?

Calculate firm profit-write down its short run supply curve : Suppose the (short run) total cost of production for a firm is given by the equation: C(q)=8q + q^2 + 400. This implies that the marginal cost equation is MC(q) = 8 + 2q. Assuming the firm is a representative firm in a competitive market, how much do..

Force acting on the box do during the lift : A 15.0 kg box initially sits at the bottom of a frictionless ramp. It is pulled by a cable to the top of the ramp, which is 2.5 m higher than the bottom of the ramp, and brought to a stop. How much work does each force acting on the box do durin..

Bottom of a frictionless ramp : A 15.0 kg box initially sits at the bottom of a frictionless ramp. It is pulled by a cable to the top of the ramp, which is 2.5 m higher than the bottom of the ramp, and brought to a stop. How much work does each force acting on the box do durin..

Write a memo to the writer of given letter : Write a memo to the writer of this letter, Mary Clease, In your memo, identify the problems with her letter to Miss Ford and offer specific recommendations on how this letter might be revised.

Show the area of the producer surplus on the same graph : Harry's Auto Shop is a perfectly price discriminating seller. Harry has an uncanny ability to assess how much people are willing to pay for a car, and he sets prices accordingly.

User Account

All Pages