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

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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

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

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