ECON 2350 Chapter Notes -Competitive Equilibrium, Economic Equilibrium, Perfect Competition
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1 total variable cost (vc) = 0. 25q2 + 8q + 3,844 and fixed cost (fc) = 24,717 for a firm in a perfectly competitive industry. Total variable cost = -2. 25q + 0. 01q2 + 441 (note the minus) and total fixed cost = 1863 for a firm in a perfectly competitive industry. Suppose there are 120 firms and 2000 households in a perfectly competitive industry. Each firm has vc = 50q + 0. 12q2 + 19,200 and fc = 24,000. Each household has an individual demand function p = 320 - 2q. a) what is firm supply? b). The table below gives the marginal cost (mc), average variable cost (avc), and average. Cost (ac) at various outputs for a firm in a competitive industry. Price (p) is from the demand curve for the industry at the total output of all the firms in the industry. Suppose that a firm in a perfectly competitive industry presently produces an output where mc.