Calculate the equilibrium price and quantity

Assignment Help Macroeconomics

Reference no: EM1369250

Assume the market demand and supply functions are QD = 430 - 5P and QS = 2P + 318. You have just graduated and moved to this city; as a new MBA and an entrepreneur, you are considering entering the market for this product.

a. Determine the equilibrium price and quantity in this market.
b. You've researched and found that most firms in the market currently experience costs such that TC = 50 + 16Q - 2Q2 + 0.2Q3. Determine whether or not you should enter this market. Use graphs to support your answer.
c. Due to unforeseen delays, you don't enter the market. However, a year later the market supply has changed to QS = 2P + 290. Are you surprised at this shift in supply?
d. Given the new supply conditions, determine whether or not you should enter the market.

Reference no: EM1369250

Questions Cloud

Analyze a negotiation between management and labor : Assume you have a negotiation between Management and Labor concerning Labor wages. Management and Labor do well when they each do the opposite of what other does.

What you expect to happen to costs within banking industry : If Congress took steps to consolidate banks, thereby reducing total number to 2500, what would you expect to happen to costs within banking industry.

Find the minimum speed must give the air at the top : Find the shear strain that results if a force of magnitude 8×10^5 is applied to the top square face of the plate, parallel to the side, and a force of equal magnitude is applied in the opposite direction to bottom face of the plate.

How much time will an e client deer spend in each patch : How much time will an e client deer spend in each patch when re are n deer. Min. Avg. Cost Sincere is free entry into deer business, equilibrium population is maximum number of efficient deer who can survive.

Calculate the equilibrium price and quantity : Assume the market demand and supply functions are QD=430-5P and QS= 2P + 318. You have just graduated and moved to this city;

What is the atmospheric pressure at the top of the mountain : A tire of an automobile has a gauge pressure of 30 psi at the top of a mountain, and the air temperature inside the tire is 300K. The atmospheric pressure at the top of the mountain is 1.7 atm.

What are future challenges also does size matter : Economies of scale can be quickly exhausted not everyone wants to ‘shop' from same ‘store' size can also mean diseconomies of scale if focus Is lost and conflict of interest what matters to shareholders is profitability not Challenges (contd.) Do..

Write java program which simulates flipping of coin : Write a Java program which simulates flipping of coin 1000 times and prints total number of heads and tails. You should create a class.

Determine profit maximizing price and output level : A small business which produces plastic vacuum-suction covers for round household dishes has monopoly that is protected through a utility patent. Market demand curve for this product is estimated to be:

User Account

All Pages