Consider a monopolistically competitive market

Assignment Help Business Economics

Reference no: EM13744059

Monopolistic Competition

Consider a monopolistically competitive market with N firms. The following equations describe the demand, marginal revenue and cost for each firm.

Demand for one firm: q = (100/N) – p Total Cost: TC (q) = 50 + 5 * q

a) Write down a firm’s total revenue, marginal revenue, average total cost and marginal cost.

b) Show in a graph how N, the number of firms in the market, affects each firm's demand curve.

c) How many units q does each firm produce? (This will be a function of the number of firms N.)

d) What price does each firm charge? (This will be a function of the number of firms N.)

e) How much profits does each firm make? (This will be a function of the number of firms N.) f) In the long run, how many firms will exist in this market?

Reference no: EM13744059

Questions Cloud

Models such as moving average-exponential smoothing : Models such as moving average, exponential smoothing, and linear trend use only:

What is a stream of historical data known as : What is a stream of historical data known as?

Analyze the development of t2d in the us : Analyze the development of T2D in the U.S., and compare its development to developing countries in general

The delphi method used for forecasting : The Delphi method used for forecasting:

Consider a monopolistically competitive market : Monopolistic Competition- Consider a monopolistically competitive market with N firms. The following equations describe the demand, marginal revenue and cost for each firm.

How communication effects behavior : How Communication Effects Behavior. examine the major effects that an employee not following a company's social media policy can have on the employer and the employee. Give two examples of the impact and consequences of an employee not following a..

Forecasting models can be divided into three groups : Forecasting models can be divided into three groups

Science and technology : Many people and experts feel that there is a strong link and dependency between science and technology. It is arguable that one can exist without the other. Explain in detail and provide your perspective with practical examples of why you feel there ..

Suppose shelly can lend-borrow money at annual rate : Consider a simplified version of the data described above. Shelly decided study economics and now is about to choose the school. She has narrowed her options to two alternatives. She can either go to Purdue or the University of Chicago. Shelly lives ..

User Account

All Pages