(This is a single question with five parts to the answer. I would appreciate help with all five parts if possible. Image screenshot of the original question with the formulas more easily readable than can be identified here is attached)Tech firms produce goods and services from labor and energy. The total cost in dollars to produce y amount of goods and services for each firm j is cj(yj) = yi2. There are 100 identical tech firms which all behave competitively.What is the individual supply of technological goods and services? What is the market supply of technological goods and services?Suppose the demand curve for these goods is D(p)=200-50p. What is the equilibrium price and quantity sold?How much is the total surplus of this economy? Now suppose that the industry makes a one-time investment for $K amount of dollars to innovate in a new technology of production that allows every firm to reduce its cost of production to a 1/4 fraction of the previous cost. What is the new total surplus of the economy? Who is benefiting the most from the industry innovation? Is it reasonable to assume that in the long-run $K is exactly equal to the size of the industry profits? why? 2Tech firms produce goods and services from labor and energy. The total cost in dollarsto produce y amount of goods and services for each firm j is c,(v.) = y. There are 100identical tech firms which all behave competitively.A. What is the individual supply of technological goods and services?B. What is the market supply of technological goods and services?C. Suppose the demand curve for these goods is D(p) = 200equilibrium price and quantity sold?D. How much is the total surplus of this economy?E. Now suppose that the industry makes a one-time investment for $K amount ofdollars to innovate in a new technology of production that allows every firm toreduce its cost of production to a 1/4 fraction of the previous cost. What is thenew total surplus of the economy? Who is benefiting the most from the industryinnovation?50p. What is theF. Is it reasonable to assume that in the long-run $K is exactly equal to the size ofthe industry profits? Why?

A perfectly competitive firm is a firm which operates in a perfectly competitive market. And firm…

Answered: ech firms produce goods and services…

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter11: The Firm: Production And Costs

Section: Chapter Questions

Problem 3P

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(This is a single question with five parts to the answer. I would appreciate help with all five parts if possible. Image screenshot of the original question with the formulas more easily readable than can be identified here is attached)

Tech firms produce goods and services from labor and energy. The total cost in dollars to produce y amount of goods and services for each firm j is c_j(y_j) = y_i². There are 100 identical tech firms which all behave competitively.

What is the individual supply of technological goods and services?
What is the market supply of technological goods and services?
Suppose the demand curve for these goods is D(p)=200-50p. What is the equilibrium price and quantity sold?
How much is the total surplus of this economy?
Now suppose that the industry makes a one-time investment for $K amount of dollars to innovate in a new technology of production that allows every firm to reduce its cost of production to a 1/4 fraction of the previous cost. What is the new total surplus of the economy? Who is benefiting the most from the industry innovation?
Is it reasonable to assume that in the long-run $K is exactly equal to the size of the industry profits? why?

2
Tech firms produce goods and services from labor and energy. The total cost in dollars
to produce y amount of goods and services for each firm j is c,(v.) = y. There are 100
identical tech firms which all behave competitively.
A. What is the individual supply of technological goods and services?
B. What is the market supply of technological goods and services?
C. Suppose the demand curve for these goods is D(p) = 200
equilibrium price and quantity sold?
D. How much is the total surplus of this economy?
E. Now suppose that the industry makes a one-time investment for $K amount of
dollars to innovate in a new technology of production that allows every firm to
reduce its cost of production to a 1/4 fraction of the previous cost. What is the
new total surplus of the economy? Who is benefiting the most from the industry
innovation?
50p. What is the
F. Is it reasonable to assume that in the long-run $K is exactly equal to the size of
the industry profits? Why?

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