T2_EX - PERFECT COMPETITION Short Run 1. The short run cost...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
PERFECT COMPETITION Short Run 1. The short run cost function of the typical firm of one industry is C = 0,5 q 2 - 10 q + 200. a) Find the short-run supply function for this firm b) Find the short-run supply function for the industry if there were 50 identical firms in that industry. c) If the market demand function is Q = 1500 - 50 P, find the short-run equilibrium of the firm and the industry. Compute total profits of the industry, d) If the market demand function becomes Q = 2000 - 50 P, find the new equilibrium and the profits earned by each firm. e) Calculate the consumer surplus in both cases. 2. There are 10 identical firms in a competitive industry. The short-run cost function of each of them is C = 250 -12q + 2q 2 . a) Calculate the short-run supply firm of the firm and the industry b ) The market demand function for that good is P= 160-Q, where Q is total industry output. Calculate the short-run equilibrium price and quantity in this market 3. There are 100 identical firms in an industry, each of them having the following short-run total cost function: C = 36 + 8q + q 2 . a) Calculate the short-run supply firm of the firm and the industry. b) The market demand function is P = 32 - Q/50, where Q is total industry output. Find the market equilibrium price and quantity. How much will each firm produce? 4. In a competitive market, demand is given by Q = 500 - 50 P. There are two groups of firms in that market: the firm has 100 firms with a cost structure given by C
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 2

T2_EX - PERFECT COMPETITION Short Run 1. The short run cost...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online