Each individual firm produce in the market equilibrium

Assignment Help Business Economics
Reference no: EM131091285

A competitive firm’s cost of production is C(Q) = 16Q - Q2 + 4Q3.

For parts (p) and (q), suppose that the market demand falls to Q* = 256 -16P.

(p) Draw this market demand curve on a diagram that includes the market supply function.

(q) Calculate the market equilibrium How much output does each individual firm produce in the market equilibrium? (This is slightly tricky.) Calculate the individual firms’ profits.

Reference no: EM131091285

Questions Cloud

Firm only variable input is? labor : Suppose that a? firm's only variable input is? labor, and the constant hourly wage rate is ?$30 per hour. The last unit? (hour) of labor hired enabled the firm to increase its hourly production from 250 units to 251 units. What was the marginal cost ..
True about market power : Which of the following statements is true about market power?
Calculate the value of the GDP at market price : A economy produced the following final goods and services during a given year: 3 million pounds of food, 100,000 shirts, 20 houses, 10,000 hours of medical services, 10 automobile plant, and 2 tanks. Calculate the value of the GDP at the following ma..
Problem between the owners of business and sale force : Sales personnel, whether selling life insurance automobiles or pharmaceutical typically get paid on commission instead of a straight hourly wage. How does paying a commission help solve the principal agent problem between the owners of a business and..
Each individual firm produce in the market equilibrium : A competitive firm’s cost of production is C(Q) = 16Q - Q2 + 4Q3. Draw this market demand curve on a diagram that includes the market supply function. Calculate the market equilibrium How much output does each individual firm produce in the market eq..
Problem between the owners of business and sales force : Sales personnel, whether selling life insurance, automobiles, or pharmaceuticals, typically get paid on commission instead of a straight hourly wage. How does pay in a commission help solve the principal-agent problem between the owners of a business..
What is lowest price at which the firm is willing to produce : A competitive firm’s cost of production is C(Q) = 16Q - Q2 + 4Q3 . Assume that the market price is P=26. Draw the firm’s supply curve. What is the lowest price at which the firm is willing to produce? You should show the exact coordinates of the supp..
Production function are both fixed and variable inputs : Included in the firm's short-run production function are both fixed and variable inputs. An efficient firm can obtain more output than the production function shows. The production function shows the technical relationship between a firm's inputs and..
Fatgear is operating in the production time : FatGear Corporation has recently finished building a new factory. They moved into the factory a month ago and found that it is the perfect size given the amount they want to produce. FatGear is operating in the A) production time B) corporation time ..

Reviews

Write a Review

Business Economics Questions & Answers

  Illustrate existence of economic profits means firm

For a competitive firm facing a market price above average total cost, the existence of economic profits means that the firm should increase output in the short run even if price is below marginal cost.

  Meaningfulness on the customer perception of the brand

Identify a few ads for brands that have been endorsed by celebrities. What is the effect of the celebrity’s attractiveness, likeability and meaningfulness on the customer perception of the brand?

  Countries seeking to adopt the euro as their currency

Countries seeking to adopt the euro as their currency must meet certain criteria, including the requirements to keep their government budget deficit equal to 3% or less of GDP, and to hold government indebtedness to less than 60% of GDP. Discuss why ..

  Categorical arguments for validity

Using a three-circle Venn Diagram, check the following categorical arguments for validity. Some advertisers try to create a new ideal state for consumers. Some advertisers try to create dissatisfaction with the consumer’s current state. So, some who ..

  Detail with a valid good explanation

U.S. policy to increase the miles per gallon (mpg) of new cars is to mandate an average mpg for cars sold by U.S. manufacturers. In many countries within the European Union, the policy is to tax gasoline so that the price per gallon at the pump is st..

  Which of the fed actions will increase bank lending

Which of the following fed actions will increase bank lending?

  Wasteful and ineffective

Republicans asserted that many of president obama's fiscal stimulus spending was " wasteful and ineffective." Does the content of fiscal stimulus spending matter?

  Federal reserve bank adopts expansionary monetary policy

Suppose the Federal Reserve Bank adopts expansionary monetary policy. Using the graph of supply and demand for the market of short term Treasury securities, show graphically and breifly explain what happens to the price of short term treasury securit..

  Illustrate what is that firm as marginal revenue

After that illustrate what is that firm as marginal revenue as it increases output from 1700 units to 2300 units

  Elucidate possible nash equilibria in pure strategies

Draw the payoff matrix for this game. Elucidate any possible Nash equilibria in pure strategies for this game.

  Your son is graduating from high school and is about

Your son is graduating from high school and is about to enter the work force. He has developed a strong curiosity about our economic system and how it works

  Analyze how inflation could occur in a society that relies

Analyze how inflation could occur in a society that relies exclusively on barter versus money. Speculate what form inflation would take and how you would recognize it. Provide support for your response.

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