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test_2_012 - A constant-cost perfectly competitive industry...

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Unformatted text preview: A constant-cost perfectly competitive industry consists of 32 iirms, each of which has a short—run total curve given by STCi =10 +0.1yi2 where STCi is the short run total cost and yi is firm output, i=1 2,3 . . .32. The market demand schedule is given by P=20-0.025Y, where P is price and y W sales. t)“ \e (a) Find the equation for the firm' 'slizurlve (2 marks) (b) Find the equation for the industry supply curve. (2 marks) \fs: [4,0 ‘3- j) P_. (c) Find P y' and y (6 marks) (d) Find the value of the short run profit or loss for each firm. (2 marks) (6) Find the total consumer and producer surplus in this short run (2 marks) Sm : {0+ 0.1 sf all 7:: rR-rc. WC : (mama? 0,24,: % s/wc : P Wm )- ,‘ 1 :PHL‘"({O+O '31:) ill; “twp/l ”it” 7: 4%l0t-0125) _ * W) e WEE: / ‘3 %4%a. . i . ‘ ‘P _ ...
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