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evablogger [386]
3 years ago
12

Each firm in a competitive market has a cost function​ of: Upper C equals 25 plus q squared​, so its marginal cost function is M

C equals 2 q. The market demand function is Upper Q equals 35 minus p. Determine the​ long-run equilibrium​ price, quantity per​ firm, market​ quantity, and number of firms.
Business
1 answer:
Effectus [21]3 years ago
3 0

Answer and Explanation:

The computation is shown below:

TC = 25 + q^2

Now

Marginal cost is

= dtc ÷ dQ

= 2q

Average variable cost  (AVC) = q

We Assuming perfect competition so there is a free entry so no profits

Therefore

ATC = P

ATC = TC ÷ q  

= q + 25 ÷ q

Now

MC = MR = P = ATC

2q = q + 25 ÷ q

q = 25 ÷ q

q^2 = 25

So, Quantity per firm = q = 5

Now

P = MC = MR = ATC

= q + 25 ÷ q  

= 5 + 25 ÷ 5  

= 5 + 5

= 10

hence, equilibrium price is 10

Now

Q = 35 - P  

= 35 – 10

= 25

Hence, Market quantity (Q)  = 25

And, the number of firms i.e n

N = Q ÷ q  

= 25 ÷ 5

= 5

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Answer:

the low opportunity cost producer. 

Explanation:

A person or nation has comparative advantage in production if it produces at a lower opportunity cost when compared with other countries or people.

For example, let's assume country x produces either 10 Apples or 5 oranges in 1 hour while country y produces either 20 Apples or 2 oranges in one hour. The opportunity cost for country x of producing apples and oranges are 0.5 and 2 respectively. While for country y, the oopportunity cost of producing apples and oranges are 0.1 and 10 respectively.

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Answer:

PART-1  

How should each instrument be changed if the Fed wishes to decrease the money supply?

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PART-2)  

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4 years ago
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Answer:

a. 27.9%

Explanation:

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where,

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So, the gross profit is

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Explanation:

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Answer:

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