Calculate the prices necessary to generate a supply

Assignment Help Econometrics

Reference no: EM13222025

Supply Function: A review of industry-wide data for the jelly and jam manufacturing industry suggests the following industry supply function:
Q = 59,000,000 + 500,000P - 125,000PL - 500,000Pk + 2,000,000W
Where Q is cases supplied per year, P is the wholesale price per case ($), PL is the average price paid for unskilled labor ($), Pk is the average price of capital (in percent), and W is weather measured by the average seasonal rainfall in growing areas (in inches).
A. Determine the industry supply curve for a recent year when PL = $8,Pk = 10 percent, and W = 20 inches of rainfall. Show the industry supply curve with quantity expressed as a function of price and price expressed as a function of quantity.
B. Calculate the quantity supplied by the industry at prices of $50, $60, and $70 per case.
C. Calculate the prices necessary to generate a supply of 4 million, 6 million, and 8 million cases.

Reference no: EM13222025

Questions Cloud

Will market forces tend to reward centralization of services : Given the cost function and economics of scale and scope information reviewed, does a policy encoouraging large, centralized hospitals seem wise Will market forces tend to reward centralization of hospital services

Explain the relative atomic radii of the two atoms : Using Slater's rules, calculate the relative effective nuclear charge on a 3p electron in : a)aluminum and (b) chlorine. Explain how results relate to:-the relative atomic radii of the two atoms

By how much does the market overproduce the good : Assume that the product depicted below generates external costs in consumption of $4 per unit. What is the socially optimal output By how much does the market overproduce this good

Explain what is the heat change solid butane : What is the heat change in J associated with 73 g of solid butane at -147 C changing to liquid at -109 oC?

Calculate the prices necessary to generate a supply : Supply Function: A review of industry-wide data for the jelly and jam manufacturing industry suggests the following industry supply function: Q = 59,000,000 + 500,000P - 125,000PL - 500,000Pk + 2,000,000W Where Q is cases supplied per year, P is the..

Health care organization which summarizesyour research : Are there any current strategies in place for disease prevention and create a memo for managers of a health care organization which summarizesyour research

Calculate average labor productivity for the us : he total annual output of the U.S. economy measured at the third quarter of 2010 was $13,278.5 billion. The total number of people employed as of December 2010 was 139,206,000. Calculate average labor productivity for the U.S.

At what quantity of output does marginal cost equal average : a. Calculate the total fixed costs, total variable costs, average fixed costs, average variable costs, average total costs, and marginal costs. Total Output Cost TFC TVC AFC AVC ATC MC 0 $20 10 $40 20 $60 30 $90 40 $120

Describe the change in equilbrum price and quanitiy : Suppose that the price of gasoline rises, and at the same time, the price of steel(an input to automiblile production) falls. Show this on your graph. If you have no other information, what can you say about the change in equilbrum price and quani..

User Account

All Pages