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The industry currently consists of 20 producers, all of whom operate with the identical short-run total cost curve STC(Q)= 16+Q2, where Q is the annual output of a firm. The market demand curve is D(P) =110- P, where P is the market price.
a) Assuming that all of each firm has 16 TL fixed cost, what is a firm's short-run supply curve?
b) What is the short-run market supply curve?
c) Determine the short-run equilibrium price and quantity in this industry.
You're flipping through the newspaper, reading about shocks that have hit the U.S. economy and reading what Congress is planning to do about the shocks.
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Calculate the total weekly economic surplus generated at the market equilibrium.
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A manager of Paris manufacturing which produces computer hard drives, is planning to lease a new automated inspection system. Suppose annual demand is 8000 units. Should the firm lease the new inspection system?
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