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Unformatted text preview: (graph) Q2 The trucking industry is perfectly competitive. Suppose, in US, there are 1,000 trucking companies. Each has a marginal cost of: MC=1+Q Where MC is in US dollar (per ton-mile), Q is in thousand ton-mile per day. a). What is the US trucking industry’s market supply curve? b). Suppose the market demand curve is given by P=100-0.01Q Where P is in US dollar (per ton-mile), Q is in thousand ton-mile per day. What are the market equilibrium price and quantity? ANS: a. Q=1000(P-1) b. P=10, Q=9000 1...
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This note was uploaded on 05/20/2011 for the course ECON 110 taught by Professor Po during the Spring '11 term at HKU.
- Spring '11
- Supply And Demand