What is the equilibrium price and quantity in the case

Reference no: EM13223304

We are once more considering a perfectly competitive market for detergent. Market demand for detergent is

Qd = 400 - 5P

Each firm's short run supply curve is

q = 2 +

Refer to the table below for the average variable costs and the fixed costs in which each single firm incurs while producing a given quantity

Quantity (q) AVC FC
5 1 36
6 2 36
7 3 36
8 4 36
9 5 36

1. In the beginning, 74 firms are in this competitive market. All firms are equal.

(a) What is the total market supply curve when 74 such firms are producing at the same time?

(b) What is the equilibrium price and quantity in this case?

(d) What will happen to the number of firms in the industry in the long run?

2. Suppose, for some reason, the number of detergent manufacturers in the perfectly competitive market decreased to 50.

Reference no: EM13223304

Questions Cloud

Defined as the relationship between a corporation : Corporate governance can be defined as the relationship between a corporation and its shareholders.

Calculate the price elasticity of demand for airplanes : The demand for Airplanes is represented by this equation : Qd=53,230 - .8V+.05Vr-3,600Vh + 4T V is the Price for Airplanes Vr is the price per trip in boats Vh is the price per gallon of gasoline T is the average income of a consumer

Comment on two recent wal-mart initiatives : Comment on two recent Wal-Mart initiatives from the standpoints of: a) Strategy and b) PR

What measures can be taken to provide more capacity : What measures can be taken to provide more capacity at a bottleneck work center?

What is the equilibrium price and quantity in the case : 1. In the beginning, 74 firms are in this competitive market. All firms are equal. (a) What is the total market supply curve when 74 such firms are producing at the same time (b) What is the equilibrium price and quantity in this case (c) What is the..

What are the next three stages : It is generally agreed that HR planning involves four distinct phases or stages, the first being situation analysis or environmental scanning. What are the next three stages?

What will happen to the price paid by us consumers : The equilibluim of the French cost per pound would be $20 per pound and the pounds of lobster would be 700 This gives a good opportunity to sell to the fishermans and they would be better off. If they would sell more lobster at a higher price the ..

Determine the schedule variance : A project to develop a county park has an actual cost in month 12 of $140,000, a planned cost of $190,000, and a value completed of $180,000. Determine the schedule variance, cost variance, SPI, CPI, and CSI for the project.

What is productivity measure of units of output per dollar : A hamburger factory produces 40,000 hamburgers each week. The equipment used costs $5,000 and will remain productive for 4 years. The labor cost per year is $9,500.

User Account

All Pages