User Account

All Pages

Monopolistic competition model

Assignment Help Microeconomics
Reference no: EM13962648

Monopolistic competition model 

TC = F + c.q where TC is the total cost, F is the fixed cost and q is the output of the firm. q = S[1/n - b(P- Pbar)] where S is the market size, n is the number of firms, P is the price charged by an individual firm and Pbar is the average price in the market.

Suppose F = 750,000,000, c = 5000, S = 900,000, b = 1/30,000.

Find the values of the following variables in a long-run equilibrium of this monopolistically competitive market: P, q, and n.

 

Reference no: EM13962648

Questions Cloud

What range of the spectrum does this fall in : What is the maximum temperature required for the maximum emissive power to enter the microwave range?
Identify typical resources-internal and external agents : Identify typical resources, internal agents, and external agents associated with each of the following business events:
The financial statements of the government : The financial statements of the government you selected should have at least three funds.
Determine corner points : After the hurricanes in Florida in the summer of 2004, FEMA sent disaster relief trucks to the state carrying bottled water and generators. Each truck could carry no more than 6000 pounds of cargo. Each case of bottled water weighed 25 pounds and ..
Monopolistic competition model : TC = F + c.q where TC is the total cost, F is the fixed cost and q is the output of the firm. q = S[1/n - b(P- Pbar)] where S is the market size, n is the number of firms, P is the price charged by an individual firm and Pbar is the average price in ..
All customers pay for their purchases at time of purchase : Horizon Books is a bookstore in downtown Madina Munawara. It carries an inventory of approximately 50,000 books. Customers come in and browse the shelves, select their books, and take them to one of three cashiers positioned in different parts of the..
Are technology-forcing standards a good idea : Are technology-forcing standards a good idea? Why or why not? The CAA makes the states - not polluters - responsible for complying with NAAQS. Does this make sense? Why or why not
Management scientist software : Determine the optimal project selection using the Management Scientist software, including the projects to included and the total net present value contribution. Provide a narrative that explains the Management Scientist solution used.
What is the electric potential at point x : A +0.605 mC charge is 0.113 m from point x, a -0.398 mC charge is 0.174 m from point x, and a -0.211 mC charge is 0.251 m from point x. What is the electric potential at point x?

Reviews

Write a Review

Microeconomics Questions & Answers

  The free rider problem

Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good.

  Failure of the super committee is good thing for economy

Some commentators have argued that the failure of the “Super committee” is good thing for the economy?  Do you agree?

  Case study analysis about optimum resource allocation

Case study analysis about optimum resource allocation: -  Why might you suspect (even without evidence) that the economy might not be able to produce all the schools and clinics the Ministers want? What constraints are there on an economy's productio..

  Fixed cost and vairiable cost

Questions:  :   Which of the following are likely to be fixed costs and which variable costs for a chocolate factory over the course of a month?  Explain your choice.

  Problem - total cost, average cost, marginal cost

Problem - Total Cost, Average Cost, Marginal Cost: -  Complete the following table of costs for a firm.  (Note: enter the figures in the  MC   column  between  outputs of  0 and 1, 1 and 2, 2 and 3, etc.)

  Oligopoly and demand curve problem

Problem based on Oligopoly and demand curve,  Draw and explain the demand curve facing each firm, and given this demand curve, does this mean that firms in the jeans industry do or do not compete against one another?

  Impact of external costs on resource allocation

Explain the impact of external costs and external benefits on resource allocation;  Why are public goods not produced in sufficient quantities by private markets?  Which of the following are examples of public goods (or services)? Delete the incorrec..

  Shifts in demand and movements along the demand curve

Describe the differences between shifts in demand and movements along the demand curve. What are the main factors which can shift the demand curve? Explain why they cause the demand curve to shift. Use examples and draw graphs to support your discuss..

  Article review question

Article Review Question: Read the following excerpts from the article "Fruit, veg costs surge' by Todd, Dagwell, published in the Herald on January 25th 2011 and answer questions below:

  Long-term growth, international trade & globalization

Long-term Growth, International Trade & Globalization:- This question deals with concepts such as long-term growth, international trade and globalization. Questions related to trade deficit, trade surplus, gains from trade, an international trade sce..

  European monetary union (emu) in crisis

"Does the economic bailout of Spain and Greece spell the beginning of the end for the European Monetary Union (EMU)?"

  Development game “settlers of catan”

Read the rules of the game, the overview and the almanac for the Development Game "Settlers of Catan"

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