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Perfect Competition in the Market for Supertankers

# Perfect Competition in the Market for Supertankers -...

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Perfect Competition in the Market for Supertankers Group Homework 2/12/2008 Shannon Bruce Blake Slater Jon Sales Sam Barotz

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Task 1: Q MC AVC 0 =1.69+(0.23*((B4/4.3)^17.7)) 1.69 1 =1.69+(0.23*((B5/4.3)^17.7)) =1.69+(0.053*((B5/4.3)^18.7))/B5 2 =1.69+(0.23*((B6/4.3)^17.7)) =1.69+(0.053*((B6/4.3)^18.7))/B6 3 =1.69+(0.23*((B7/4.3)^17.7)) =1.69+(0.053*((B7/4.3)^18.7))/B7 4 =1.69+(0.23*((B8/4.3)^17.7)) =1.69+(0.053*((B8/4.3)^18.7))/B8 5 =1.69+(0.23*((B9/4.3)^17.7)) =1.69+(0.053*((B9/4.3)^18.7))/B9 6 =1.69+(0.23*((B10/4.3)^17.7) ) =1.69+(0.053*((B10/4.3)^18.7))/B1 0 ANSC ATC 1.69 1.69 =(2.8/B5)+1.69+((0.053*(B5/4.3)^18.7)/B5) =(11.33/B5)+1.69+((0.053*(B5/4.3)^18.7)/B5) =(2.8/B6)+1.69+((0.053*(B6/4.3)^18.7)/B6) =(11.33/B6)+1.69+((0.053*(B6/4.3)^18.7)/B6) =(2.8/B7)+1.69+((0.053*(B7/4.3)^18.7)/B7) =(11.33/B7)+1.69+((0.053*(B7/4.3)^18.7)/B7) =(2.8/B8)+1.69+((0.053*(B8/4.3)^18.7)/B8) =(11.33/B8)+1.69+((0.053*(B8/4.3)^18.7)/B8) =(2.8/B9)+1.69+((0.053*(B9/4.3)^18.7)/B9) =(11.33/B9)+1.69+((0.053*(B9/4.3)^18.7)/B9) =(2.8/B10)+1.69+((0.053*(B10/4.3)^18.7)/B10) =(11.33/B10)+1.69+((0.053*(B10/4.3)^18.7)/B10)
q MC AVC ANSC ATC 0 1.69 1.69 1.69 1.69 1 1.69 1.69 4.49 13.02 2 1.69 1.69 3.09 7.355 3 1.690393 1.690021 2.623354 5.466688 4 1.753944 1.693427 2.393427 4.525927 5 5.009749 1.867904 2.427904 4.133904 6 85.36839 6.174282 6.640948 8.062615 0 2 4 6 8 10 12 14 16 18 20 0 1 2 3 4 5 6 MC AVC ANSC ATC Task 2: To find the shut down point set MC=ATC 1.69+0.23(q/4.3)^17.7=(11.33/q)+1.69+((.053(q/4.3)^18.7)/q You could use either excel, algebra, or a graphing calculator to solve for q. q=4.9133809 Now to find the price we plug q in MC and solve for p.

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Perfect Competition in the Market for Supertankers -...

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