Equilibrium in this perfectly competitive market

Assignment Help Basic Computer Science
Reference no: EM131739133

In a perfectly competitive market, demand is given by Qd(P) = 60 - P. There exist 300 identical firms. Each firm's short run total cost function: STC(q) = 0.1 + 150q2; short run marginal cost function: SMC(q) = 300q; average variable cost function: AVC(q) = 150q. Show the short run equilibrium in this perfectly competitive market.

Step 1 profit maximization condition: P = 300q.

Step 2 derive market supply: qs(P) = P/300 and Qs(P) = 300(P/300) = P

Step 3 equilibrium condition: Qs(P) = Qd(P) ó P = 60 - P

P*= 30

q* = 30/300=.1

Q* = 30

Why profit max is P=300q and Can you explain why Step 2 qs(P)=P/300?

Reference no: EM131739133

Questions Cloud

Price and income elasticities : Calculate the price and income elasticities for the following demand functions.
Demonstrates the evolutionary nature of the world system : which demonstrates the evolutionary nature of the world system. Catalysts, such as these two wars, permanently altered our notions of war
Liquid detergent bottles of particular brand : A salesperson at a local store has been monitoring the demand for 50-ounce liquid detergent bottles of a particular brand.
Determine crumplers budgeted net profit : BBAC501 Assignment - Determine Crumpler 's budgeted net profit for the year 2017. (Hint: use contribution margin approach to income statement or variable
Equilibrium in this perfectly competitive market : In a perfectly competitive market, demand is given by Qd(P) = 60 - P. There exist 300 identical firms. Each firm's short run total cost function
Develop a case study for your peers to analyze : Develop a case study for your peers to analyze that includes an element or aspect of diversity.Describe the situation.
Compile a comprehensive business report on the organisation : INP202 - Industry Practicum Assessment - Industry Practicum Report. You are required to compile a comprehensive business report on the organisation
Write sql query that return the purchase agents names : write SQL query that return the purchase agent's name(s) who placed a purchase order (mutual commitment) of the inventory type Big stuff.
How does the icj determine international law : What are the essential differences between the International Court of Justice and the U.S. Supreme Court?

Reviews

Write a Review

Basic Computer Science Questions & Answers

  Find the a at which l/d is maximum

Find the α at which L/D is maximum. Use different algorithms presented in this chapter to arrive at the optimum.

  Hospital after having a seizure at work

Patient was admitted to the hospital after having a seizure at work. The admitting diagnosis was to rule out epilepsy. After testing was performed, the cause of the seizure was not determined, as the physician stated the patient did not have epile..

  Describe the make-up of a predefined structure

Describe the make-up of a predefined structure.

  Algorithms and data structures

Algorithms and Data Structures Chapter: LINEAR PROBING VS SEPARATE CHAINING (HASHES) Question: Which one is better:

  While budget and schedule are critical components of project

While budget and schedule are critical components of projects

  Filtering internet content

Give several examples of countries that are either filtering Internet content now or are working on laws to make this legal.

  Common task of a network administrator

A common task of a network administrator is to segment the network to provide for efficiency and throughput in the processing of data traffic.

  What is the probability that no fragment arrives

What is the probability, roughly, that LAST FRAG expires? Assume this happens only when the last fragment is lost.

  Does the internet require governance

Do you agree that a monolithic body of Internet governance is necessary or desirable? Justify your answers.

  Create a simple 3-d model of a two-story house

You can either estimate or consult specialized charts used by architects to locate the sun at these times of day.

  Improving database design

The purpose of this SLP assignment is to refine database design using ER modeling principles. You are required to revise the tables you designed in the first module by doing the following:

  Identify the three primary areas a project manager

Identify the three primary areas a project manager must focus on to ensure success. Explain which area you feel is most important and why.

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