Micro Problem Set # 10 spring 2020.pdf - Name(first last...

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Name (first, last): ________ ____________________ PROBLEM SET # 10 Microeconomics Use a ruler to draw all graphs. Label graphs appropriately: titles, axes, and curves. If necessary, round all calculations to two decimal places and show work. Print out the problem set and write in your solutions. Make sure your problem set is stapled. Problem sets that are not stapled will not be accepted. There are a series of multiple-choice questions at the end of this problem set. Using the adjacent table, write in your choice for each question. 1) Assume the pizza market is a perfectly competitive constant cost industry, and all firms have identical costs (i.e., homogenous firms). The market demand and market supply functions for this perfectly competitive industry are given below. ? = 30.5 − .005? ? = 1.7 + .003? ? 𝒒 = 𝑻𝑷 𝑻𝑪 𝑻𝑭𝑪 𝑻𝑽𝑪 𝑨𝑻𝑪 𝑨𝑽𝑪 ?𝑪 0 0 100 100 0 1 10 205 100 105 20.50 10.50 2 20 12.25 7.25 3 30 280 100 180 9.33 6.00 4 40 340 100 8.50 5 50 430 100 330 8.60 6.60 6 60 100 445 9.08 7 70 720 100 620 10.29 8.86 8 80 930 100 830 11.63 10.38 9 90 1190 100 1090 13.22 12.11 a) Fill in the missing values in the table. - - - 10.50 3.50 6.00 9.00 7.42 17.50 21.00 26.00 Multiple Choice Question Answer 1 2 3 4 5 6 7 8
b) Find the market equilibrium price and quantity. Show work. c) Consider an individual firm in this industry. Should the firm produce in the short-run? Explain using AVC or ATC data.

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