Find between marginal cost and market share

Assignment Help Business Economics

Reference no: EM13998718

Consider a market comprised of three firms. Firm 1 produces and sells 23 units per period. Firm 2 produces and sells 19 units per period, while firm 3’s periodic production and sales are 15 units. The (inverse) market demand is estimated to be: P = 100−Q, where Q = total output =q1+ q2+ q3 Determine the market price and the elasticity of market demand as well as the market share of each firm. Now determine each firm’s marginal cost. What relation do you find between marginal cost and market share?

Reference no: EM13998718

Questions Cloud

Disadvantages of using an expansionary monetary policy : What are the advantages and disadvantages of using an expansionary monetary policy in a recession compared to using fiscal policy? (Please note: I am not asking you how monetary policy works. You have already answered it in part c above. The question..

What kind of a demand- management policy : After the aggregate demand decreases in part “a” above, what kind of a demand- management policy would a typical liberal economist propose, an active policy or do nothing? How about a conservative economist? What justifications would they provide or ..

Assume initially-economy is in state of long-run equilibrium : Assume initially that the economy is in a state of long-run equilibrium. The real GDP equals potential GDP and only natural unemployment exists. Now suppose that consumer confidence plummets and the aggregate demand decreases. What will happen to the..

Radamels utility function : Let’s go back to better times for Radamel, before his injury. Remember he had a monthly allowance of $200 and an hourly wage of $50. Suppose that Radamel’s utility function is U=C^.5L. assume that the total “awake” hours are 110 per week. How many ho..

Find between marginal cost and market share : Consider a market comprised of three firms. Firm 1 produces and sells 23 units per period. Firm 2 produces and sells 19 units per period, while firm 3’s periodic production and sales are 15 units. Determine the market price and the elasticity of mark..

What is long-run total cost function : Toby uses apple (A) and labour (L) to produce juice (q). His production function is: Draw the Toby’s expansion path on a diagram from a). Derive an expression for the expansion path. How does it depend on the wage and the price of apple? What is Toby..

Basis of interest rate-what alternative is superior : You need to borrow $10,000 and the following alternatives are available:-Pay $2983 at the end of each year for 5 years, starting at the end of the first year (5 payments total) On the basis of interest rate, what alternative is superior? Please draw ..

Labor hours hired by the profit maximizing monopsonist : Suppose that one firm is the only employer of a certain labor service (i.e., the firm is a monopsonist). Assume its MRPL is given by L= 11 - w and the labor supply is L = W. What is the wage paid and the number of labor hours hired by the profit maxi..

User Account

All Pages