The typical firm in a perfectly competitive market

Reference no: EM13372119

The typical firm in a perfectly competitive market manufacturing an appliance part has long-run total cost of TC = 6q² + 2400 and marginal cost of MC = 12q, where q is the quantity produced per firm per year and costs are measured in dollars. Market demand is given by Q = 50,000 - 100P, where Q is market quantity sold per year.

a. What is the minimum efficient scale in this industry? Explain your answer and illustrate with a graph.

b. What is the long-run equilibrium price in this market? Explain intuitively, in your own words, why this is the long-run equilibrium. What is the long-run market equilibrium quantity? (No graph is required.)

Reference no: EM13372119

Questions Cloud

Transverse waves with a speed of 590 ms are to be produced : transverse waves with a speed of 59.0 ms are to be produced on a stretched string. a 4.95-m length of string with a

Assume you have been hired as a managing consultant by a : assume you have been hired as a managing consultant by a company to offer some advice that will help it make a decision

Affects of investment of ldc-pick one country that has done : affects of investment of ldc-pick one country that has done well with investmentall good point-pick one country that

Nbspnbspnbspnbspnbspnbspnbspnbsp 1 the above figure shows : nbspnbspnbspnbspnbspnbspnbspnbsp 1 the above figure shows the isoquants for producing steel. increasing returns to

The typical firm in a perfectly competitive market : the typical firm in a perfectly competitive market manufacturing an appliance part has long-run total cost of tc

1 the economically efficient rate of harvest is less than : 1. the economically efficient rate of harvest is less than the maximum sustainable yield. compare and contrast these

Economics of oil gas and energyread through the executive : economics of oil gas and energyread through the executive summary of the ukerc report on the rebound effect. briefly

The following data are available for output q and long run : the following data are available for output q and long run total cost ltc for a firm. using appropriate calculations

Amonopolists demand function is given byp 80 - 3qwith mr : a monopolists demand function is given byp 80 - 3qwith mr 80 - 6q.its total cost function isnbsptc 20q 200with mc

User Account

All Pages