1
answer
5
watching
655
views
18 Jul 2021
A firm in perfect competition market has AVC (USD) = 20 +9, where Q is in units. When market price is 33 USD, the firm is losing 216 USD.
a. What is the firm's producer surplus when the market price is 81 USD? b. What is the firm's decision when the market price is 41 USD?
c. Assume that, there are 1000 firms in this market with identical cost functions (AVC = 2Q + 9). What is the market short run supply function?
d. Present all the above results on a graph.
A firm in perfect competition market has AVC (USD) = 20 +9, where Q is in units. When market price is 33 USD, the firm is losing 216 USD.
a. What is the firm's producer surplus when the market price is 81 USD? b. What is the firm's decision when the market price is 41 USD?
c. Assume that, there are 1000 firms in this market with identical cost functions (AVC = 2Q + 9). What is the market short run supply function?
d. Present all the above results on a graph.
Read by 7 people