ECO200Y5 Study Guide - Final Guide: Real Wages, Asteroid Family, Car Rental

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magentacicada384

2 Sep 2014

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Tutorial 13 - monday - july 21, 2014 - 4pm - 5pm. Suppose there are a fixed number of 1,000 identical firms in the perfectly competitive concrete pipe industry. Each firm produces the same fraction of total market output and each firm"s production function for pipe is given by q = (kl)(1/2) Rts (l for k) = k/l and for this production function. Suppose also that the market demand for concrete pipe is given by where q is total concrete pipe. How much labour will be hired by each firm and in the market as a whole? (c) suppose the market wage, rose to while v remained constant at . Suppose the demand for labour is given by and the supply is given by where l represents the number of people employed and w is the real wage rate per hour.

Related Questions

Suppose you are given the following information about a particular perfectly competitive industry:

Q^D= 6500-100P .....Market demand

Q^S= 1200P .....Market Supply

C(Q)=722+(Q²)/200 ......Firm's total cost function

Assume all firms in this perfectly competitive industry are identical.

a) Find the equillibrium price and the equilibrium quantity for the entire industry, the output supplied by the firm, and the profit of each firm.

b) Would you expect to see entry into or exit from this industry in the long run? Explain. What effect will entry or exit have on market equilibrium?

c) Suppose the long run total cost function is given by C(Q) = 6Q-3Q²+Q³. What will the price be in long run equilibrium in this industry? Is profit positive, negative or zero? Explain.

apricothorse950

Problem VIII: A perfectly competitive firm faces the total cost function T C = 2Q + 2Q^2. The firm is part of an industry where the market demand is given by P = 816 -2Q and the market supply is given by P = 12 + Q/100 .

a) What is the optimal quantity that this firm will sell on this market? What will be the resulting profit? (Q=3.5, Profit=24.5)

b) Assuming identical firms, how many firms are active on this market (need to be active on this market to satisfy the market equilibrium condition, given their individual production levels)? (N=114.29)

c) What is the shutdown point for this firm?

amethystdolphin813

1) Tell how they combine to insure that in the long run a firm in a perfectly compitive industry make zero profit and is a price taker.

2) suppose each frim in perfectly competitive broccli industry has a long run total cost curve given (1/150)Q^3-0.49Q^2 + 89

a) without knowly the demand function can we say how much broccoli each firm produces in long run equilibrium? if so under which assumption. if not explain why?

b) if demand is given by Q= -400p + 16002, what is the long run equilibrium price, quantity in market? how many firm will there be?

ECO200Y5 Study Guide - Final Guide: Real Wages, Asteroid Family, Car Rental

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