Suppose that each firm in a competitive industry has the following costs: Total cost: TC = 50 + 0.5Q^2 The market demand curve for this product is: Qd= 120 −P There are 9 firms in the market. a) What are each firm’s: fixed cost, variable cost, marginal cost, and average total cost? Graph the average-total-cost curve and the marginal-cost curve. b) Give the equation for each firm’s supply curve. the average-total-cost curve at its minimum? What is marginal cost and average total c) Give the equation for the market supply curve for the short run in which the number cost at that quantity?
Suppose that each firm in a competitive industry has the following costs: Total cost: TC = 50 + 0.5Q^2 The market demand curve for this product is: Qd= 120 −P There are 9 firms in the market. a) What are each firm’s: fixed cost, variable cost, marginal cost, and average total cost? Graph the average-total-cost curve and the marginal-cost curve. b) Give the equation for each firm’s supply curve. the average-total-cost curve at its minimum? What is marginal cost and average total c) Give the equation for the market supply curve for the short run in which the number cost at that quantity?
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter12: The Cost Of Production
Section12.3: The Various Measures Of Cost
Problem 3QQ
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Suppose that each firm in a competitive industry has the following costs: Total cost: TC = 50 + 0.5Q^2
The market
There are 9 firms in the market.
a) What are each firm’s: fixed cost, variable cost, marginal cost, and
b) Give the equation for each firm’s supply curve.
the average-total-cost curve at its minimum? What is marginal cost and average total
c) Give the equation for the market supply curve for the short run in which the number
cost at that quantity?
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