This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: -minAVC -minATC -MC, ATC and AVC of producing 50 breadboards 3. Market demand and market supply for concrete blocks (a perfectly competitive industry) are : Qd = 150 2P Qs = 3P. Price = price per block Q = number of blocks in thousands. All the firms in the industry are identical. A firms MC = 5 + 5Q and ATC = Q 2 . What is the firms profit-maximizing level of output? What is the firms profit? How many firms are there in the industry? Is the industry in LR equilibrium? 4. A monopoly faces market demand P = 120 -2.5Q. Its MR = 120 5Q MC = Q ATC = 10 + Q What is the monopolys profit maximizing level of output? Selling price? Profit? If this were a perfectly competitive market, what would be price and output level? What is the monopolys producer surplus?...
View Full Document
This note was uploaded on 02/18/2010 for the course ECONOMICS 1b03 taught by Professor Holmes during the Spring '10 term at McMaster University.
- Spring '10