Solved by Expert Tutors
Solved by Expert Tutors
Question

Suppose that the manager of a firm operating in a competitive market

has estimated the firm's average variable cost function to be AVC = 10 -0.030 +0000050

Total fixed cost is \$600.

i. What is the corresponding marginal cost function?

ii. Determine the shutdown price of the product that the firm produces.

ii. If the forecasted price is \$7 per unit, how much output will the firm produce in the short run? How much profit (loss) will the firm earn?

The market demand curve faced by Cournot duopolies is:

P = 120 - 0.5Q.

where Qp is the market quantity demanded and P is the market price in dollars.

i. Assuming firm A has a constant marginal cost of \$20 and firm B has a constant marginal cost of \$34. Determine the equilibrium rate of output and profit in the industry.

i. Suppose there are five firms in the industry. Considering identical cost structure for all firms, where total cost is 30Q, what will be the equilibrium rate of output for each of the firms?

ii. How do your results vary in terms of price and output from (i) to (ii) evaluate

a. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Done

a. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec

usce dui lectus, congue vell

risus ante, dapibus a molestie consequat, ultrillesti

Fusce dui lectus, congue vel laorelet, consectx

a. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit amet, consectetur

s ante, dapibus a molestie conse

itur laoreet. Nam risus ante, dapibus a molet, consectx

fficitur laoreet. Nam risus ante,ipsum dolor sit amet, consectetur adipiscing elit. Nam lacinia

ia pulvinar tortor n

tesque dapibus efficitur laoreet. Nam risus ante, dapibus al

rem ipsum dolor sit amet, consectetur adipiscii

acinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. Fusce du

ongue ve

onec aliquet. Lorem ifm risus ante, dapibus al

ipsum dolor sit amet, consecteturfor nec facfusce dui

ec aliquet. Lorelsqu

or neclllentesque dapibus efficitur

, ultric

llentesque dapibus efficitur laoreet. Nam r

dictum

entesque dapibus efficiturl

ultrices ac magna. Fusce dui lectul

dictum v

x

xtesque dapibus efficitur laoreet. Nam risus ante, dapibus a mol

x

m risus ante, dapibus a molestie consequat, ultrices ac magna. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam ri

nec facilisis. P

e vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit a

Fusc

Donec aliquet. Lorem

ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit amet, consec

ur laoreet. Nam risus ante, dapibus a molestie

faci

iscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. Fusce dui lectus, congue

Donec aliq

acinia pulvinar tortor nec facilisis. Pellentesque

onec aliquet. Lorem ipsum dolor sit amet,

acinia pulvi

r

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

• -

Study Documents

Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

Browse Documents