How many firms are in this industry

Assignment Help Econometrics

Reference no: EM131248562

A market contains a group of identical price-taking firms. Each firm has a marginal cost curve SMC(Q) = 2Q, where Q is the annual output of each firm. A study reveals that each firm will produce if the price exceeds $20 per unit and will shut down if the price is less than $20 per unit. The market demand curve for the industry is D(P) = 240 P/2, where P is the market price. At the equilibrium market price, each firm produces 20 units. What is the equilibrium market price, and how many firms are in this industry?

Reference no: EM131248562

Questions Cloud

Illustrating the lesson concept and explaining : Write an essay illustrating the lesson concept and explaining parts a) and b) . This original post must contain a minimum of 300 words. Students must demonstrate critical thinking by paraphrasing the material into their own words (direct quotes sh..

How much does each type b firm produce : Each type B firm has a short-run supply curve sB(P) = 10P. The market demand curve is D(P) = 5000 - 500P. What is the short-run equilibrium price in this market? At this price, how much does each type A firm produce, and how much does each type B ..

Sketch the one dimensional phase line : How does the growth rate depend on the population? - Sketch the one-dimensional phase line. - Sketch the time-dependent solution qualitatively.

Issues and case analysis : ToolsCorp Corporation is a fictitious company that does exist anywhere. For the purpose of this course, it is located it in Tennessee. As members of the senior management team of ToolsCorp Corporation

How many firms are in this industry : The market demand curve for the industry is D(P) = 240 P/2, where P is the market price. At the equilibrium market price, each firm produces 20 units. What is the equilibrium market price, and how many firms are in this industry?

A model of population growth : Show that the qualitative behavior of this model will be the same as the qualitative behavior of the quadratic logistic model analyzed in this section.

What concerns would you have about protecting the complex : What concerns would you have about protecting the complex during construction? What role does local/model building code play during the construction phase to ensure firefighter safety?

What is the market equilibrium price : Each firm in the industry is currently earning zero economic profit. How many firms are in this industry, and what is the market equilibrium price?

Good methods of monitoring : What are the tools and ways that project managers monitor and control projects? What are good methods of monitoring? How important is it to monitor the costs of a project? When should a project manager intervene?

User Account

All Pages