Find the short run equilibrium price and market quantity

Assignment Help Business Economics

Reference no: EM131076466

There is currently 20 identical firms in a perfectly competitive market. Each firm has a cost function of the form: SC(q) = 10q2 +200q + 7000. The market demand is P = -4QD + 3000.

a) Find the short run equilibrium price, market quantity, and firm quantity and explain why this is not a long run competitive equilibrium.

Reference no: EM131076466

Questions Cloud

Explain the rationale for this tax and debt philosophy : In every presidential election some candidates claim that taxes are too high and should be lowered. In addition recognizing that the U.S. continues to have large deficit, adding national debts, these candidates claim that tax revenue (lower taxes) wi..

What is the stock current value per share : The dividend is expected to grow at a constant rate of 4% a year. The required rate of return on the stock, rs, is 17%. What is the stock's current value per share?

Write insertion and removal operations for this tree : In a doubly linked chain, each node can point to the previous node as well as to the next node. Figure 4-9 shows a doubly linked chain and its head pointer. Define a class to represent a node in a doubly linked chain.

Investing in one of two well-diversified portfolios : You are considering investing in one of two well-diversified portfolios. Portfolio A has an expected return of 8% and a beta of 0.85 while Portfolio B has an expected return of 12% and a beta of 1.95. Assuming that you are a rational risk-averse i..

Find the short run equilibrium price and market quantity : There is currently 20 identical firms in a perfectly competitive market. Each firm has a cost function of the form: SC(q) = 10q2 +200q + 7000. The market demand is P = -4QD + 3000. Find the short run equilibrium price, market quantity, and firm quant..

What assets are going to deploy to extinguish these fires : How are you going to coordinate with your resources to evacuate the remaining 38,000 survivors still at the location?Keeping in mind this is an active crime scene, there will be many deceased in the parking lot and inside the coliseum.

Produces units of commodity : A company produces x units of commodity A and y units of commodity B each hour. The company can sell all of its units when commodity A sells for p=90−5x dollars per unit and commodity B sells for q=70−4y dollars per unit. The cost (in dollars) of pro..

What is the earnings per share for abc : As a stockholder of ABC, you receive its annual report. In the financial statements, the firm reported after-tax earnings of $5,200,000 and has issued 1,600,000 shares of common stock. The stock is currently selling for $36 a share. What is the ea..

A system consists of five identical components : As soon as one component fails, the entire system will fail. Suppose each component has a lifetime that is exponentially distributed with λ = .01 and that components fail independently of one another.

User Account

All Pages