Answer each question. Be brief. Show your working, economics homework help

User Generated

Wbuafbajbexf

Economics

Description

Wooden tables are produced in a perfectly competitive market.

Each firm has a short-run total cost curve of 𝑇𝐶 = 𝑄 3 − 12𝑄 2 + 100𝑄 + 1000, where quantity is measured in number of tables per day.

The marginal cost of production is given by 𝑀𝐶 = 3𝑄 2 − 24𝑄 + 100.

  • Q1 Calculate the price below which a firm in the market will not produce any output (the shutdown price).
  • Q 2 [7 marks] Assume that the industry for flour tortillas in Denver is perfectly competitive. There are 200 firms. 75 of the firms are “high-cost,” with short-run supply curves QHC = 5P, while the others are “low-cost,” with short-run supply curves QLC = 8P. Quantities are measured in dozens of tortillas and prices in dollars Answer the following questions:
  • A. Derive the short-run industry supply curve for tortillas [2 marks]
  • B. Assume the market demand curve for tortillas is given by QD = 10,000 – 625P. Find the market equilibrium price and quantity. [1 mark]
  • C. At this price, how many dozens of tortillas are produced by the high- and low-cost firms, respectively? [2 marks]
  • D. Determine total industry surplus at the equilibrium. [2 marks]

User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Explanation & Answer

Attached.
Attached.

Running Head: COMPETITIVE MARKET

1

Competitive ma...


Anonymous
I was having a hard time with this subject, and this was a great help.

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4

Similar Content

Related Tags