Compute how many firms can efficiently serve the market

Assignment Help Econometrics
Reference no: EM13192241

The firms's cost function is C(Q) = 100 + 10Q + Q2.
a) Determine the efficient scale of production. (Hint: Compute the average cost AC(Q) and determine the level of production, which minimizes average cost.)
b) Assuming that the demand is D(P) = 100 - 2P. The regulator chooses average cost pricing. Compute how
many firms can efficiently serve the market and the total amount Q produced. (Hint: It suffices to compute the price at the efficient production level computed in a) to determine whether the inverse demand crosses the average cost function at the left or right of its minimum. At the price equal to the minimum average cost, the
corresponding demand determines the number of firms.)
c) Assuming that the demand is D(P) = 15-0.25P. The regulator chooses average cost pricing. Compute how many firms can efficiently serve the market and the total amount Q produced. The same hint as in b) applies to c).

Reference no: EM13192241

Questions Cloud

How much money can the school donate : For every adult ticket sold, the school can donate $5.00 to charity. A total of 512 tickets are sold 0.5 of them are adult tickets. How much money can the school donate?
State naturally occuring chlorine has two isotopes : Naturally occuring chlorine has two isotopes, Cl-35, which has an atomic mass of 34.969 amu and Cl-37. If the average atomic mass of chlorine is 35.46 amu and its natural abundance is 75.53%
Find the lst quartile q1 : Rank the data from lowest to highest and determine the requested quartile. The following scores on the midterm exam in Chemistry 102 were recorded. 93 81 59 69 82 73 61 77 95 84 88 71 85 97 63 72 89 80 98 91 62 78 83 76 81 94 66 83 96. Find the ls..
Define the average atomic mass of chlorine : Naturally occuring chlorine has two isotopes, Cl-35, which has an atomic mass of 34.969 amu and Cl-37. If the average atomic mass of chlorine is 35.46 amu and its natural abundance is 75.53%,
Compute how many firms can efficiently serve the market : Assuming that the demand is D(P) = 100 - 2P. The regulator chooses average cost pricing. Compute how many firms can efficiently serve the market and the total amount Q produced. (Hint: It suffices to compute the price at the efficient production l..
Explain the heat capacity of the bomb calorimeter : When 1.550 g of liquid hexane (C6H14) undergoes combustion in a bomb calorimeter, the temperature rises from 25.87 ºC to 38.13 ºC. Find ?E rxn for the reaction in kJ/mol hexane. The heat capacity of the bomb calorimeter, determined in a separate e..
Find a linear formula for the cost : The monthly charge for a waste collection serive is $32 for 100 kg of waste and $48 for 180 kg of waste. Find a linear formula for the cost, C, of waste collection as a function of the number of kilograms of waste, w.
What dimensions yield the minimum surface area : a company is constructing an open-top, square-based, rectangular metal tank that will have a volume of 60ft^3. what dimensions yield the minimum surface area?
What value of theta will maximize the trough volume : A trough is to be made with an end of the dimensions shown. The length of the trough is to be 21ft long. Only the angle theta can be varied. What value of theta will maximize the trough's volume?

Reviews

Write a Review

Econometrics Questions & Answers

  What term do economists use to describe this second outcome

If the CPI was 110 last year and is 121 this year, what is this year's rate of inflation In contrast, suppose that the CPI was 110 last year and is 108 this year. What is this year's rate of inflation What term do economists use to describe this s..

  Calculate monthly returns and average monthly returns

Choose two firms from different industrial sectors, e.g. high tech computers, health, customer non durables, cyclical etc.

  Fine the density

Consider the density Fx(x)= exp{-x} if x>_0, and 0 otherwise; Find: f(y) if Y = 2X+1, Find f(y) if Y = X^2, Find f(y) if Y = X, Find f(y) if Y = lnX

  Solve these equations for the equilibrium values of c

Assume that the following equations characterize a large open economy: (1) Y = 5,000 (2) Y = C + I + G + NX (3) C = 1/2(Y - T) (4) I = 2,000 - 100r (5) NX = 500 - 500e (6) CF = -100r (7) CF = NX (8) G = 1,500 (9) T = 1,000where NX is net exports, CF ..

  Calculate the simplified equation for net marginal benefits

The state of Connecticut is well known for its almandine garnet. The Almandine Garnet Mine has plans to extract 80 tons over the next two years. The production benefits and costs are: MB = 40 ? 0.1Q MC = 36 + 0.25Q Assume..

  What are the resulting values of employment wage

Suppose that the production function is Y= 9K^0.5 N^0.5 With this production function, the marginal product of labor is MPN= 4.5K^0.5 N^-0.5. The capital stock is K= 25. The labor supply curve is NS= 100(1-t)w]^2, where w is the real wage rate, t ..

  How to maximize utility with a budget constraint

What combination of the two goods below allows you to maximize your utility with a budget constraint of $14? Show how you arrived at your conclusion in the space provided below. Place your final answers on the lines at the bottom of this page. ..

  What promised payment will savers require

a safe firm and a risky firm. Each firm needs to borrow the same amount of funds to start a project. The safe firm knows with certainty that it will see a 30 percent return on the project (i.e., for each $100 borrowed, the safe firm will see rev..

  What is the maximum amount the annuity can pay

A businessman wants to donate the funds to establish a new academic support program for student athletes. He is prepared to donate $10 million today (Feb. 16, 2012), one year hence (Feb. 16, 2013), and two years hence (Feb. 16, 2014) to establish

  Determine the total cost is the sum of the two costs

Historical records show that 70 structures with 800 square feet of floor space and 8 foot ceilings were produced in 1999.Then the materials cost for each structure was $25,000 and the cost capacity factor is 0.65. Cost index values for 1999 and 20..

  Determine which product mix should be pushed

Assume that product A requireds .5 hour per unit and B requires .25 hour per unit. If both products must go through the same manufacturing machine and there are only 30000 machine hours available per period, which product should be pushed

  How much will he owe the bank at the end of 3 years

A man borrowed 750 dollars from a bank. He agrred to repay the sum at the end of 3 years, together with the interest at 8% per year. How much will he owe the bank at the end of 3 years

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd