Compute price and quantity in equilibrium, Microeconomics

Assignment Help:

In the city of Gelato the market for ice cream is perfectly competitive. Aggregate demand for ice cream is:

D(p) = 1200-25p

where p is the price for one cone of ice cream. All ice cream producers in the city have the same total cost function:

C(qi) =10qi

where qi represents the number of ice cream cones firm i produces. Assume that the market is in equilibrium.

a) Derive the firms' marginal and average cost.

b) Compute price and quantity in equilibrium.

Assume that there are 50 firms present in the market.

c) Calculate the number of ice cream cones that each firm produces. Will they produce the same quantity? Why (not)?

d) In general, is it possible that a firm in a perfectly competitive market produces at a price greater than its average cost?

 


Related Discussions:- Compute price and quantity in equilibrium

Risk loving persons, Risk Loving - A person is a risk loving if they sh...

Risk Loving - A person is a risk loving if they show a preference toward the uncertain income over a certain income having same expected value. Examples: Gambling, some

S block elements, electronic configuration of s block elements

electronic configuration of s block elements

Managerial econ, what will cause a firms demand curve to shift: a a change ...

what will cause a firms demand curve to shift: a a change in sellers profit associated with the good or service b change in technology for good cchange in non price variable in dem

Laspeyres index, Laspeyres index The Laspeyres index tells us that: ...

Laspeyres index The Laspeyres index tells us that: - The amount of money at present year prices which an individual requires to purchase bundle of goods and services which w

Effectiveness of productive effort, Productivity:Generally, productivity me...

Productivity:Generally, productivity measures efficiency or effectiveness of productive effort. Productivity can be measured in several different ways. Physical productivity measur

Managerial Economics, What does economic theory contribute to managerial ec...

What does economic theory contribute to managerial economics? Explain

Calculate the required reserve ratio, 1. Calculate the required reserve rat...

1. Calculate the required reserve ratio. 2. Assume that Pam wants to borrow money to pay for a new car from Sharpeland Bank. a. What is the maximum amount that Sharpeland Ban

Macroeconomics, The Wealth of Nations of Modern Economies When the federal ...

The Wealth of Nations of Modern Economies When the federal government uses expenditures to stimulate the economy, it changes not only the present but the future as well. Question

International economics, how has the haberlers theory of opportunity cost ...

how has the haberlers theory of opportunity cost an improvement over the classical theory of trade

Write Your Message!

Captcha
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