Calculate the equilibrium price of output in this industry

Reference no: EM131072361

The market demand and supply curves in a perfectly competitive industry are given by: Qd = 30,000-600P and Qs = 200P-2000.

(a) Draw these functions on a diagram, and calculate the equilibrium price of output in this industry.

(b) Now assume that an additional firm is considering entering. This firm has a short-run MC curve defined by MC = 10+0.5Q, where Q is the firm's output. If this firm enters the industry and it knows the equilibrium price in the industry, what output should it produce?

Reference no: EM131072361

Questions Cloud

Do you view yourself as special and is that a good thing : Do you view yourself as special and is that a good thing? Discuss how would you respond as well as how you would justify your response to the women in the laundry matt who said, to her 5 year old son, "shut the f%&* up you little s@#$"?

A product inventory changes daily due to customer demand : A product inventory changes daily due to customer demand that withdraws from it and production that replenishes it on the days when it is operating.

Management is considering stock split : Jpix management is considering a stock split. Jpix currently sells for $120 per share and a 3 for 2 stock split is contemplated. what will be the company’s stock price following the stock split assuming that the split has no effect on the total marke..

Manufacturer of energy-efficient lighting solutions : Gardial green light, a manufacturer of energy-efficient lighting solutions, has had such success with it new products that it is planning to substantially expand its manufacturing capacity with a 15 million investment in new machinery. how much exter..

Calculate the equilibrium price of output in this industry : calculate the equilibrium price of output in this industry.

What would the required rate of return for security : If the risk free rate is 6%, The market return is 15%, and the beta is .5, using the capital asset pricing model, what would the required rate of return be for security "J"? what would the required rate be for security "K" given beta of 1? What would..

Calculate the profit that each firm is making : Is the ATC sloping up or down at the current equilibrium? [Hint: is the MC above or below the ATC at the chosen output?]

Coupon bond maturing-what is the yield to call : ABC corp has a $1000 par value 12 1/2 coupon bond maturing in 2026, and callable 5 years after issuance at a call price of $1080. Assuming you purchased the bond 2 years after issuance at a price of $975, what is the yield to call?

Assuming the account yields annually : If you deposit $2000 into an account at the end of every year for the next 30 years, how much will you have at the end of 30 years assuming the account yields 9% annually?

User Account

All Pages