User Account

All Pages

How many firms are there at the new long-run equilibrium

Assignment Help Macroeconomics
Reference no: EM131157928

The daily demand for pizzas is Qd= 750 - 25P, wherePis the price of a pizza. The daily costs for a pizza company initially include $50 in fixed costs (which are avoidable in the long run), and variable costs equal to VC=Q2/2, whereQis the number of pizzas produced in a day. Marginal cost is MC=Q. Suppose that in the long run there is free entry into the market. If fixed costs fall to $18 and, in the short run, the number of firms is fixed (so that neither entry nor exit is possible) and fixed costs are sunk, what is the new short-run market equilibrium? What is the new market equilibrium in the long run? How many firms are there at the new long-run equilibrium?

Reference no: EM131157928

Questions Cloud

Discuss possible best practices from the guerrilla marketing : Discuss possible best practices from the guerrilla marketing campaign that different types of small businesses could leverage. Provide specific examples to support your response
Is the firm making a profit or a loss : The daily wage per worker is $80, and the price of the firm's output is $41. The cost of other variable inputs is $400,000 per day. Assume that total fixed cost equals $900,000. (Note: Assume that output is constant at the level of 100,000 units p..
Why education is so important : Here is an article for discussion http://www.uniteduc.org/why-is-education-so-important why education is so important?
Create a resume for given job : Select a position that you might like to apply for from a career search website.- Create a one- to two-page resume for this job.
How many firms are there at the new long-run equilibrium : If fixed costs fall to $18 and, in the short run, the number of firms is fixed (so that neither entry nor exit is possible) and fixed costs are sunk, what is the new short-run market equilibrium? What is the new market equilibrium in the long run?..
How the individual uses verbal and nonverbal : What are some ways that paraeducators are important links to schools and the surrounding community? What do you believe are contributing factors to the attrition rate of paraeducators in your school district?
What is your own decision-making style : What group cohesion strategies will you apply in future team work? Describe these strategies and how they strengthen group work. What is your own decision-making style? Describe this style and how you will apply it to future group work
Consider a monopolistic firm selling : Consider a monopolistic firm selling the same product in two separate markets, A and B, which have different demand curves. The demand in market A is defined by PA = 18 - 2QA for positive prices and quantities (i.e., for all PA, QA > 0) and the de..
Determine the real interest rates in each category : All Items, 12-months ending with the last month). Subtract this annual rate of -inflation from your updated interest rates in the table to determine the real interest rates in each category.

Reviews

Write a Review

Macroeconomics Questions & Answers

  Competitive dynamics in the banking sector

Compare a collusive oligopoly market structure with perfect competition in terms of price, output, allocative efficiency and consumer and producer surplus. Support your analysis with economic theory and graphs.

  Tobins and baumols approaches of money demand

What are the differences between Tobins and Baumols approaches of money demand.

  Perfectly price-discriminatithe decision to raise production

the noncolluding oligopolist, there are two factors that affect the decision to raise production - Compared to perfectly competitive firms

  The bretton woods system and institutions setup after world

the bretton woods system and institutions setup after world war iinbspthe u.s. dollar as a reserve currencymost of the

  Computing profit-maximizing quantity and price

A monopolist has a constant marginal and aver­age cost of $10 and faces a demand curve of Q D  = 1000 - 10P. Compute the monopolist's profit-maximizing quantity, price, and profit.

  Suppose the price elasticity coefficient anticipation

Suppose the price elasticity coefficient anticipation of the Christmas season. Estimated 4th quarter sales volume will be.

  What specific indices mean in relationship to overal article

1.A minimum of three general economic principles related to the recent article not older than six months. 2.Identification of five macroeconomic indices 3.Explanation of the indices e.g., GDP, CPI, and other economic calculations

  What occurs when real gdp exceeds potential gdp

What is the effect on the aggregate demand curve of the increase in government purchases? What occurs when real GDP exceeds potential GDP? What curve shifts in order to restore real GDP to potential GDP? Why does this curve shift?

  Calculate the annualized yield

Suppose a four year pure discount bond with a face value of $1000, if current price is $850, calculate the annualized yield of this pure discount bond.

  Find the probability limits of w1 and w2

Find the probability limits of W1 and W2. State whether these estimators are consistent or inconsistent. Find Var(W1) and Var(W2). Argue that W1 is a better estimator than Y if ? is "close" to zero for any value of n. (Hint: Compare the Mean Square ..

  Define what type of market structure is the auto industry

Compare the automotive manufacturing industry today to the automotive manufacturing industry of the 1950's. Applying the economics of price and output, what is the difference between the industry of today and that of the 1950's.

  Assume that the orange and banana are substitute to each

Suppose a freeze in florida wipes out 20% of the orange crop. How will this affect the equilibrium price and quantity of banana? Assume that the orange and banana are substitute to each other.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd