How much profit does each firm make

Assignment Help Microeconomics

Reference no: EM13926284

Suppose the following data describe the demand for liquid-diet beverages:

$11	$10	$9	$8	$7	$6	$5	$4	$3	$2
7	10	13	16	19	22	25	28	31	34

Price Quantity

demanded

Five identical, perfectly competitive firms are producing these beverages. The cost of producing these beverages at each firm is the following:

Quantity

produced	0	1	2	3 4	5	6	7	8	9	10
Total cost	$5	$8	$10	$13 $17	$22	$28	$36	$45	$55	$67

(a) What price will prevail in this market?

(b) What quantity is produced?

(d) What happens to price if two more identical firms enter the market?

Reference no: EM13926284

Questions Cloud

Explain which change model would follow for the short-term : Provide rationale for your decision and discuss the effects that these changes would have on the employees, managers, and executives within the organization.

Can a coefficient of determination be negative : Do men and women select different breakfasts? The breakfasts ordered by randomly selecting men and women at a popular breakfast place is shown. Conduct a test for homogeneity at a 5% level of significance. Can a coefficient of determination be nega..

How many bookstores are on or near your campus : What entry barriers exist in (a) the fast-food industry, (b) cable television, (c) the auto industry, (d) illegal drug trade, (e) potato chips, and ( f ) beauty parlors?

A database holds a group of files : A database holds a group of files, often called ____, that together serve the information needs of an organization.Syntax____ errors are detected by a compiler.

How much profit does each firm make : What price will prevail in this market? What quantity is produced? How much profit (loss) does each firm make?

Explain why ethics are needed in an organization : Explain why ethics are needed in an organization and how ethics are integrated into the organization to achieve its direction and goals.

Purpose of the annotated bibliography : In certain classes, you will be asked to write an annotated bibliography, which sounds quite intimidating, but is simply a brief summary of something you have read or consulted during the course of your research on a given subject.

Histogram showing the actual frequency : The following is a histogram showing the actual frequency of the closing prices on the Singapore Stock Exchange of a particular stock.

Write the least squares prediction equation for the model : Calculate and give an interpretation of the coefficients based on a one-unit change in each xi.

User Account

All Pages