Find supply curve-perfect competition and entry decisions, Macroeconomics

Assignment Help:

ChoppinAxe is a small Swedish firm that produces wood planks and operates in a perfectly competitive market. Every firm in the market has the following total cost function:

C(qi)  =2304 -20qi +4qi2

where qi represents the tons of wood planks each firm i produces. ChoppinAxe and all other firms sell their products to only one buyer, IPEA, an international furniture company. IPEA's

total demand for wood planks can be described as follows:

D(p) =3448 -4p

where p is the price for a ton of wood planks. You may assume that the market is in equilibrium.

a) Find ChoppinAxe's supply curve.

b) How many tons of wood planks will ChoppinAxe sell to IPEA? At which price?

c) Repeat sub questions (a) and (b) for KindCutters, another wood planks producer present in the market.

FallingTrees is a start-up firm that is considering entering the wood planks market. Along with ChoppinAxe and KindCutters there are another 113 wood plank producers in the market.

d) Should FallingTrees enter the market? Why (not)?


Related Discussions:- Find supply curve-perfect competition and entry decisions

Factors responsible for changes in aggregate demand, Factors Responsible fo...

Factors Responsible for changes in Aggregate Demand The Aggregate Demand curve shows an inverse relationship between the quantity of goods and services demanded and the price l

What do you mean by the long run outcome, Imagine a firm with the same cost...

Imagine a firm with the same cost structure but in each of the four market structures: Competitive, Monopolistically Competitive, Oligopoly, and a Monopoly. Using the concepts of c

Show the components of gdp, Q. Show the components of GDP? The circular...

Q. Show the components of GDP? The circular flow - simple version We have defined GDP, gross domestic product, as the market value of all finished service and goods produced

Money multiplier, what is money multiplier? what is role , importance, adva...

what is money multiplier? what is role , importance, advantages , disadvantages , limitations and examples of money multiplier?

Household production, Assume two individuals, A and B, are considering marr...

Assume two individuals, A and B, are considering marriage, and each face the same amount of hours a week to be split between market-labor and home-labor.  Assume that A can make $2

Components of balance of payments, Components of Balance of Payments   T...

Components of Balance of Payments   The BoP statement is usually divided into three major groups of accounts. These are: i.The Current Account: This account records the imp

Bank of canada announces that it will raise the money supply, Suppose the B...

Suppose the Bank of Canada announces that it will raise the money supply in the future but does not change the money supply today. Using the Fisher equation, explain what happens t

Elucidate the rise in gdp, How much does GDP rise in each of the following ...

How much does GDP rise in each of the following scenarios: 1. During a recession, the government raises unemploymemnt benefits by $100 million. 2. A new US airline purchases

What are the slopes of demand curves, Use the points on the graph below to ...

Use the points on the graph below to answer the following questions. i)   What is Ep along D1 (from A to B)? ii)  What is the Ep along D2 (from X to Y)? iii) What are

Number of gallons of pain, The number of gallons of paint that Home Depot s...

The number of gallons of paint that Home Depot sells in a given day is normally distributed with a mean of 150 gallons and a standard deviation of 35 gallons (I realize that the di

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