Homework Help Question & Answers

Please answer me in detail. Thank you. Market demand curve is D(P)=400-5P. The oil drilling industry consists of 60 pro...

The oil drilling industry consists of 60 producers, all of whom have an identical short- run total cost curve, STC(Q) = 64 +

Please answer me in detail. Thank you.

Market demand curve is D(P)=400-5P.

The oil drilling industry consists of 60 producers, all of whom have an identical short- run total cost curve, STC(Q) = 64 + 2Q2, where Q is the monthly output of a firm and $64 is the monthly fixed cost. The corresponding short-run marginal cost curve is SMC(Q) 4Q. Assume that $32 of the firm's monthly $64 fixed cost can be avoided if the firm produces zero output in a month. The market demand curve for oil drilling services is D(P)-400 5P, where D(P) is monthly demand at price P. Find the market supply curve in this market, and determine the short- run equilibrium price
0 0
Next > < Previous
ReportAnswer #1

P= SMC= 4Q

Q= P/4

This is the firm's supply function.

Market supply curve= 60*Q= 60*P/4= 15P

At equilibrium, supply= demand

15P= 400-5P

20P= 400

P= 20

Add Homework Help Answer
Add Answer of:
Please answer me in detail. Thank you. Market demand curve is D(P)=400-5P. The oil drilling industry consists of 60 pro...
Your Answer: Your Name: What's your source?
Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
More Homework Help Questions Additional questions in this topic.
Need Online Homework Help?
Ask a Question
Get FREE EXPERT Answers
WITHIN MINUTES
Related Questions