What is the long-run market price and quantity in market

Assignment Help Business Economics

Reference no: EM131195547

All firms in the competitive jawbreaker (giant gumball) industry has a total cost function of:

c(q) = 1/4q + 1/10q^2 + 10

The demand for this product is defined by:

p = 4 - (1/1000)Q

1: What is the long-run market price and quantity in this market? How many firms will produce jawbreakers?

2: Assume that a study is released revealing that four out of five dentists believe that jawbreakers promote tooth decay. Demand plummets to:

p = 3 - (4/875)Q Assume that the number of firms is fixed in the short-run. What is the industry’s short-run supply curve? What is the new market equilibrium price and quantity. How much does each firm earn in profits?

Reference no: EM131195547

Questions Cloud

The annual market for florida oranges : The following graph shows the annual market for Florida oranges, which are sold in units of 90-pound boxes. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once ..

Willingness and ability to purchase parcel : Suppose that there are three beachfront parcels of land available for sale in Astoria, and six people who would each like to purchase one parcel. Assume that the parcels are essentially identical and that the minimum selling price of each is $570,000..

Organization metaphors or metal models : What organization metaphors or metal models are at work in your organization? Give example of expressions or labels used in your organization to support your answer.

Estimate cost associated with mitigating the identified risk : Risk assessment is a major part of Project Management. All Health hospital plans to develop a paperless system over a one year period. In your risk analysis estimate the cost associated with mitigating the identified risks

What is the long-run market price and quantity in market : All firms in the competitive jawbreaker (giant gumball) industry has a total cost function of: What is the long-run market price and quantity in this market? How many firms will produce jawbreakers?

What types of features are available on the laptops : What types of features are available on laptops that could be used by our staff? What kinds of tools are available for your support staff to use to assist in supporting laptops both locally and remotely for our satellite offices?

Prepare journal entries to record the purchase of the bonds : Prepare journal entries to record the purchase of the bonds, the first two interest receipts, and the sale of the bonds.

Demand for hours of music function of price of electricity : Luis is a fan of loud music that he plays on his stereo system. His utility function is defined by equation: Find Luis’ demand for hours of music as a function of the price of electricity. Maria moves out, and Gordon moves in with Luis. Gordon’s util..

Analyze the trends that you observed with each company : Analyze the trends that you observed with each company. To what could you attribute the increases or decreases in each company's trend(s)? What recommendations would you give to the brand managers of your favorite brand to increase the trend line f..

User Account

All Pages