Consider a perfectly competitive market that consists of 20 consumers with identical preferences. Their preference is given by v(x) = 200-2(x-10)^2 if x < 10 or x = 10, and 200 if x > 10. The industry supply of this market is s(p) = 5p. The consumer surplus is
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- 3. The industry producing and selling wooden pallets is comprised of 100 identical firms each of which has a short-run total cost function given by C's = 0.5g² + 10g + 5, where q is output of (standardized) wooden pallets per day. (a) What is the equation of the short-run supply curve for each firm? (b) What is the equation of the short-run supply curve for the market as a whole? 3A company produces a special new type of TV. The company has fixed costs of $477,000, and it costs $1100 to produce each TV. The company projects that if it charges a price of $2500 for the TV, it will be able to sell 750 TVs. If the company wants to sell 800 Tvs, however, it must lower the price to $2200. Assume a linear demand. What price should the company charge to earn a profit of $953,000? it would need to charge $_____.In this problem, p is in dollars and x is the numbey of units. If the demand function for a product isp = 9/(x + 1) and the supply function is p = 1 + 0.2x, find the consumer's surplus under pure competition. (Round your answer to the nearest c 24
- A company produces a special new type of TV. The company has fixed costs of $468,000, and it costs $1400 to produce each TV. The company projects that if it charges a price of $2400 for the TV, it will be able to sell 750 TVs. If the company wants to sell 800 TVs, however, it must lower the price to $2100. Assume a linear demand. What price should the company charge to earn a profit of $742,000?The supply function for a product is 2p - 4 - 10 = 0. while the demand function for the same product is (p + 10)(4 + 30) = 7200. Find the market equilibrium point.4. Consider a market where every firm and every potential entrant has the iden- tical cost function C(q) = 3q³-6q² +6q. (a) Find the firm's inverse supply function. (b) Suppose the market demand function is given by QP (P) = 20-2P. Find the long-run equilibrium price, quantity, and the number of firms. (c) Suppose the demand function suddenly becomes perfectly inelastic at quan- tity Q = 7. Find the long-run equilibrium price, quantity and the number of firms. (d) Suppose the demand becomes perfectly inelastic at quantity Q = 7, and the government decides to collect a per unit tax t = 4 from the producers for every unit of the good they sell. Find the long-run equilibrium price, quantity and the number of firms.
- A company produces a special new type of TV. The company has fixed costs of $494,000, and it costs $1100 to produce each TV. The company projects that if it charges a price of $2500 for the TV, it will be able to sell 700 TVs. If the company wants to sell 750 TVs, however, it must lower the price to $2200. Assume a linear demand. What price should be set to earn maximum profits?American Girl doll has an inverse demand curve of P- 150 0.25Q, where Q measures the quantity of dolls per day and P is the price per doll. The marginal cost is given by MC 10+0.50Q. What is the total surplus at the profit -maximizing output level? 1)$12,250Correct2) $144,0003)$18,1204)$4,500Consider a market where every firm and every potential entrant has the identical cost functionC(q) = 3q3 − 6q2 + 6q.(a) Find the firm’s inverse supply function. b)SupposethemarketdemandfunctionisgivenbyQD(P)=20−2P.Find the long-run equilibrium price, quantity, and the number of firms. (c)Suppose the demand function suddenly becomes perfectly inelastic at quantity Q ̄ = 7. Find the long-run equilibrium price, quantity and the number of firms.(d) [5] Suppose the demand becomes perfectly inelastic at quantity Q ̄ = 7, and the government decides to collect a per unit tax of t = 4 from the producers for every unit of the good they sell. Find the long-run equilibrium price, quantity and the number of firms Please express final numerical answers in decimal format Equation attached below
- (f) Discuss the concept is P = 850 - 3q² consumer surpluses. of producer and consumer surplus. The demand function of a certain product and the supply function is P = q² + 600. Determine the producer and (g) Define Price elasticity of demand (P.E.D). The demand function of a certain product is given by P = 850 - 3q² + 5q³. Determine the price elasticity of demand where revenue is maximized.Q=0, P=220; Q=2, P=200; Q=4, P=180; Q=6, P=160; Q-8, P=140; Q=10; P=120; Q=12, P=100. a) Based on the information in the table, what is the demand function for this market? b) Calculate total and marginal revenues for this market in the table c) if the total cost function for this market is TC = 500 + 10Q^(2), calculate the total and marginal costs for each of the quantities in the table d) What are the profit-maximizing quantity, price, and profit for this market? e) If there are two firms Atlas and Bowden in this market with the same earlier total cost function and they engage in Cournot competition, what is each firm's equilibrium quantity, price, and profit? f) Is this a long-run equilibrium? Why or why not?The demand function for a certain brand of DVD is given by p = = -0.001x? – 0.2x + 8 where p is the unit price in dollars and x is the quantity demanded each week, measured in units of a thousand. Determine the consumers' surplus if the mar- ket price is set at $18 per disc.