What is the minimum price at which firms will continue

Assignment Help Macroeconomics
Reference no: EM13332919

Assume that there are a large number of identical firms in a competitive industry, each with the cost function:

TC = 25+4q+q2

a. What is the minimum price at which firms will continue operating in the short run? In the long run?

Reference no: EM13332919

Questions Cloud

Determine what level of sales could edney have obtained : Edney Manufacturing Company has $3 billion in sales and $0.7 billion in fixed assets. Currently, the company's fixed assets are operating at 80% of capacity. What level of sales could Edney have obtained
Is this industry in long-run competitive equilibrium : Average cost is minimized at q = 10 and AVC is minimized at q = 8 for each of these firms. Demand for the product is P = 100-QD
What is probability that return on the asset will be less : Suppose the historical average annual return for the asset was 7.3 percent and the standard deviation was 8.4 percent. What is the probability that your return on this asset will be less
How large of a sales increase can the company achieve : Pierce Furnishings generated $2 million in sales during 2011, and its year-end total assets were $1.1 million. Also, at year-end 2011, current liabilities were $500,000, consisting of $200,000 of notes payable
What is the minimum price at which firms will continue : Assume that there are a large number of identical firms in a competitive industry, each with the cost function
What is the most would pay per share on the stock : The dividend for Should I, Inc., is currently $1.2 per share. It is expected to grow at 20 percent next year and then decline linearly to a 5 percent perpetual rate beginning in four years.
Give specific examples of how the determinants of demand : Think about a product that you have purchased recently (e.g. soda, diapers, takeout meals, milk, shoes, manicure/pedicure, video game, etc.).
Explain process is an example of sublimation : This process is an example of sublimation. d) This process is an example of freezing. e) This process is an example of condensation.
Find how long will it take to make : You are a space traveller and you land on the surface of a new planet. You decide to drill a tunnel through the center of the planet to the opposite side of the planet. How long will it take to make it to the other side of the planet

Reviews

Write a Review

Macroeconomics Questions & Answers

  Firm pricing rule and profit maximization

The Hanover Manufacturing Company believes that the demand curve for its product is P = 5 - Q-Evaluate the wisdom of the firm's pricing policy

  What is the most likely outcome in the situation

Suppose the payoffs are instead as follows If they both open at location A, theater earns 12 while the restaurnat earns 8. If both open at B, the theater earns 8 and the restaurant earns 12. IF they open at different locations, they both earn 2.

  Similar same set of price quantity combinations are utilized

The similar same set of price quantity combinations are utilized to compute the price elasticity of demand

  Calculation of average daily monthly balance

Assume that you never carry cash. Your paycheck of $1,000 per month is deposited directly into your checking account on the 1st day of the month,

  Finding present value and the maturity value

How is interest rate described? Why is there a lower present value of goods to be delivered in future? What are their respective interest rates? Illustrate the adjustments which you think will ensue.

  Find equilibrium locations by maximizing profit functions

Firms can now not only choose their prices but can also choose their location. This happens in two stages. In the first period, firms choose their locations and in the second period, they choose their prices. The transport cost of the consumer is ..

  Illustrate what is the relationship between the variable

Illustrate what is the relationship between the variable that you selected and the economy. What trends do you see in the data sets.

  What kind of gap—inflation aryor recessionary

An economy is inlong-run macroeconomic equilibrium when each of the followingaggregate demand shocks occurs. What kind of gap—inflationaryor recessionary—will the economy face after the shock

  Is current monetary policy expansionary or contractionary?

Why has the Federal Reserve selected this policy at this time? What efects does the Federal Reserve expect this policy to have on the U.S. economy?

  Difference among concretionary and fiscal policy

Illustrtae the difference among concretionary and expansionary fiscal policy.

  What might be the second thing would do and why

Suppose the demand for what you "sell" rises relative to the supply of what you sell.  a. How would you know demand has increased (What is the first piece of information which would lead you to conclude that demand has increased)

  Steve plans to take the contract that provides him highest

Steve plans to take the contract that provides him with the highest net present value. At what discount rate would he be indifferent between the two contracts.

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd