Solution-What is the profit a typical firm will make

What is the profit a typical firm will make

Assignment Help Econometrics

Reference no: EM131011491

An industry has 100 identical firms in an industry that behaves like a perfect competition (so all firms are price takers). Each firm has a short-run total cost curve of

C=0.2q^2 + 5q + 20

a. Calculate the short run supply curve for a representative firm as a function of price (P).

b. Calculate the industry short run supply curve.

c. Suppose the market demand is given by Q=-200P+6000. What is the short run equilibrium price and quantity?

d. What is the profit a typical firm will make?

e. Since all firms act like price takers, what is the long run equilibrium price in this market? Explain how you arrived at this answer.

Reference no: EM131011491

Questions Cloud

Maturity premium the real risk-free rate of interest : A three year treasury note as no maturity premium the real risk-free rate of interest is 4% the T note carries a yield to maturity of 14% the expected average inflation rate over the next 12 year is 11% what is the implied inflation rate during ear t..

Treasury securities that have an interest rate : Treasury securities that have an interest rate of 8.5% will mature in six years over the next six years the inflation rate is projected at 6% for each of the next three years and 5% each year there after using T as the number of years to maturity of ..

Comparing municipal bond and treasury bond : you are comparing a municipal bond and a US treasury bond as a possible investment for your corporation both bonds have the same maturity and both bonds are equally risky and equally liquid the treasury bonds yield 7% your corporations marginal incom..

Define leverage- what is leverage : As we get started with this discussion, I want us to define leverage- what is leverage? In addition, s financial leverage an area that should be carefully balanced and monitored? Is it possible to have too little or too much leverage?

What is the profit a typical firm will make : Calculate the short run supply curve for a representative firm as a function of price

How much of the living dinosaurs would be remaining tod : Suppose we had a 66 million year old dinosaur fossil. How much of the living dinosaur's 14C would be remaining today?

What advantages to employer offering different benefits : Write a paper that compares and contrasts various forms of compensation, incentives, and benefits. What are the advantages and disadvantages to the employer offering these different benefits? Include an analysis of issues that an organization and ..

Role o the cost of capital in the valuation process : What is the role o the cost of capital in the valuation process, and what is one of the primaries uses the cost of capital (meaning in what area of chance is the ost often applied)? Why is it important for financial managers to understand the cost of..

Raised the maximum amount of short-term funds : The Nelson Company has $1,875,000 in current assets and $625,000 in current liabilities. Its initial inventory level is $375,000, and it will raise funds as additional notes payable and use them to increase inventory. What will be the firm's quick ra..

User Account

All Pages

What is the profit a typical firm will make

Reference no: EM131011491

Reference no: EM131011491

Questions Cloud

Reviews

Write a Review

Econometrics Questions & Answers

Design a simple econometric research project

Multiplicative decomposition method

Market for cigarettes

Solve the forecast model

What are the marginal abatement cost functions

Write the t statistic for testing the null hypothesis

What is economics system

Multiple choice questions related to market concentration

Calculating number of units produced by firm

Question about mobile commerce

Calculating the average days past due and average flow time

Mechanism of an english auction and second price auction

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT