Calculate the market price and market output at the lrce

Assignment Help Econometrics

Reference no: EM131082411

Show and explain all calculations. Provide detailed economic reasoning.

1. A competitive firm's short run total cost function is given by

TC = q³ - 16q² + 100q + 120

(a) Calculate the profit maximizing output and the resulting profit when price is $30.

(b) Calculate the profit maximizing output and the resulting profit when price is $80.

2. In a perfectly competitive industry each producer has a long run total cost function given by

LTC = q³ - 24q² + 200q

where q denotes the output of the individual firm.

The market demand for the product is

Q = 1480 - 5P

where Q and P denote the market output and price respectively.

(a) Calculate the optimal output produced by each firm at the long run competitive equilibrium (LRCE).

(b) Calculate the market price and market output at the LRCE.

Reference no: EM131082411

Questions Cloud

Wages of security guards for manufacturing plant : Direct or indirect costs with respects to each individual focus group - variable or fixed costs with respect to how the total costs of Ace Marketing Private Limited change as the number of focus groups changes.

Concern for customer needs : Explain how the two measures recommended by Olym show concern for customer needs.

Implement this and visualize the experiments : Implement this and visualize the experiments.

Relationship between demand management : Answer the following questions from the textbook in a Word document. Your answers should be about one to two paragraphs per question. You can find a grading rubric located in Doc Sharing. 1. What is the relationship between demand management, orde..

Calculate the market price and market output at the lrce : Calculate the optimal output produced by each firm at the long run competitive equilibrium (LRCE). Calculate the market price and market output at the LRCE. Calculate the number of firms at the LRCE.

Does this improve the overall display : Does this improve the overall display?

Show that of all the rectangles with a given perimeter : Quiz 9. Show that of all the rectangles with a given perimeter, the one with greatest area is a square

Describe the primary job responsibilities : If you were a Continuous Improvement Manager in your organization, describe some of the methodology you would apply to identify root causes. What are the tools you would use to help you achieve your primary job responsibilities?

What is the length of the longest pipe : Optimization. A steel pipe is being carried down a hallway 9 ft wide. At the end of the hall there is a right-angled turn into a narrower hallway 6 ft wide. What is the length of the longest pipe that can be carried horizontally around the corner

User Account

All Pages