7. Assume that the marginal cost curve is given by mc(q) = 100 + 2q. (a) If the price is $160, what is the optimal production for the firm? What if the price is $120? (ignore the shut-down decision for this part) (b) Assuming that the market is cleared at $160 (no shortage/surplus). If the market demand is equal to 10, 000 units of the product. How many firms are currently operating (n) in the market? (Hint: if the market clears qd = n x q°) (c) If the total cost curve is TC = 256 + 100g + q², what’s the average total cost curve? what's the break-even price? (d) If the demand curve is given by qd = 8, 452 - P, what's the long-run equilibrium price, the equilibrium quantity and the long-run total number of firms (n) in the industry?

7. Assume that the marginal cost curve is given by mc(q) = 100 + 2q. (a) If the price is $160, what is the optimal production for the firm? What if the price is $120? (ignore the shut-down decision for this part) (b) Assuming that the market is cleared at $160 (no shortage/surplus). If the market demand is equal to 10, 000 units of the product. How many firms are currently operating (n) in the market? (Hint: if the market clears qd = n x q°) (c) If the total cost curve is TC = 256 + 100g + q², what’s the average total cost curve? what's the break-even price? (d) If the demand curve is given by qd = 8, 452 - P, what's the long-run equilibrium price, the equilibrium quantity and the long-run total number of firms (n) in the industry?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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