1. Market demand is given as Q = 220 - 4P. Market supply is given as...

Question

Question

1. Market demand is given as Q = 220 - 4P. Market supply is given as Q = 2P + 40. Each identical firm has MC = 0.5Q and ATC =

business economics

Answer 1

Answer #1

Sol 1:

Firm is in equilibrium where Qd = Qs

220 - 4P = 2P + 40

180 = 6P

180/6 = P

30 = price

Qd = 220 - 4(30)

= 220 - 120

= 100

ATC = 0.25Q

= 0.25 x 100 = 25

(NOTE : As per the policy , we have to solve only 1 question per post. So , please post the remaining question in separate post. )

Answer 2

Similar Homework Help Questions

Market demand is given as QD = 220 – 4P. Market supply is given as QS...

Market demand is given as QD = 220 – 4P. Market supply is given as QS = 2P + 40. Each identical firm has MC = 0.5Q and ATC = 0.25Q. What is a firm’s average total cost? 2. Describe what happens to output, price, and economic profit in the short run and in the long run in a competitive market following: a) An increase in demand. b) A decrease in demand. c) The adoption of a new technology that...
need answer quickly 1. Market demand is given as QP = 220 - 4P. Market supply...

need answer quickly 1. Market demand is given as QP = 220 - 4P. Market supply is given as QS = 2P + 40. Each identical firm has MC = 0.5Q and ATC = 0.25Q. What is a firm's average total cost?
Market demand is given as QD = 200 – 3P

Market demand is given as QD = 200 – 3P. Market supply is given as QS = 2P + 100. Each identical firm has MC = 0.5Q and ATC = 0.25Q. What is each firm’s profit?

2. Describe what happens to output, price, and economic profit in the short run and in...

2. Describe what happens to output, price, and economic profit in the short run and in the long run in a competitive market following: a) An increase in demand. b) A decrease in demand. c) The adoption of a new technology that lowers production costs.
Question 5 (15 marks) Market demand is given as QD = 120 - P. Market supply...

Question 5 (15 marks) Market demand is given as QD = 120 - P. Market supply is given as QS = 4P. Each identical firm has MC = 6Q and ATC = 3Q. Showing your calculations, answer the following questions: A) What quantity of output will a typical firm produce? (5 marks) B) What is a typical firm's average total cost? (5 marks) C) What is a a typical firm's profit? (5 marks)
In a competitive market the demand curve is given by Q = 1600 –4P and supply...

In a competitive market the demand curve is given by Q = 1600 –4P and supply by Q = 4P. What is the total surplus (TS) in the market equilibrium? a) TS = 80,000 b) TS = 1,600 c) TS = 0 d) TS = 160,000 e) none of the above.

The following supply and demand functions describe the competitive market Q2+4P Q40-2P where Q and Q"...

The following supply and demand functions describe the competitive market Q2+4P Q40-2P where Q and Q" are the quantities supplied and demanded, and P is the market price. (a) What are the equilibrium price, P, and quantity, Q"? (b) Compute the producer and consumer surplus that results from the market equilibrium in (a). Hint: To solve this problem, try drawing a graph of this market. Then recall the definitions from class: CS is the area under the demand curve and...
e) Suppose that a competitive firm's marginal cost of producing output q is given by MC(q)...

e) Suppose that a competitive firm's marginal cost of producing output q is given by MC(q) -3+2q. Assume that the market price of the firm's product is $9. i) What level of output will the firm produce? (2p) ii) What is the firm's producer surplus? (4p) ii) Suppose that the average variable cost of the firm is given by AVC(g)-3+q. Suppose that the firm's fixed costs are known to be $3. Will the firm be earning a positive, negative, or...
Question 12 (1 point) Market demand is given as QD = 300 - 5P. Market supply...

Question 12 (1 point) Market demand is given as QD = 300 - 5P. Market supply is given as QS = 5P. Each identical firm has MC = 6Q and ATC = 40. What is a firm's average total cost? $10 O $15 $20 O $30

2. Describe what happens to output, price, and economic profit in the short run and in...

2. Describe what happens to output, price, and economic profit in the short run and in the long run in a competitive market following: a) An increase in demand. b) A decrease in demand. c) The adoption of a new techndlogy that lowers production costs.