ECON 2350 Chapter Notes -Competitive Equilibrium, Economic Equilibrium, Perfect Competition

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azurewolf760

6 Jul 2013

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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.

Related Questions

19. Suppose that a perfectly competitive constant cost industry is initially in short and long- run equilibrium. What is the effect of an increase in fixed costs on the short-run equilibrium price, the industry output, the output of the firm, and profit of the firm? (A) no change in price, firm output, or profit, but a decrease in industry output (B) no change in price, industry output, firm output, or profit (C) no change in price, firm output, or industry output but a decrease in profit (D) increase in price, industry output, firm output, and profit (E) increase in price, industry output, and firm output, but decrease in profit (F) increase in price and industry output, decrease in profit but no change in firm output (G) increase in price and firm output, decrease in profit but no change in industry output (H) increase in firm output and industry output, decrease in profit but no change in price (I) none of the above

36. Suppose that a perfectly competitive constant cost industry is initially in short and long-run equilibrium. In general, what will be the effect of an increase of $10 per unit in variable costs on the short-run cquilibrium price, the short-run industry output, the short-run output of the firm, and the short-run profit of the firm? (A) no change in price, industry output, firm output, or profit (B) increase in price, industry output, firm output, and profit ferincrease in price, industry output, and firm output, but decrease in profit ((D) idcrease in price, decrease in firm output and industry output and profit Vet increase in price and industry output, decrease in profit but no change in firm output (F) increase in price and firm output, decrease in profit but no change in industry output (G) increase in firm output and industry output, decrease in profit but no change in price (H) no change in price, firm output, or industry output but a decrease in profit (I) no change in price, firm output, or profit, but a decrease in industry output (J) none of the above

At the short-run break-even point, the perfectly competitive firm is producing how many units of output at the market price of 150$? Furthermore how many units of output will the firm produce to maximize profit in the short run? Specify the amount of economic profit or loss for the firm

Output (Q)	Total Fixed Costs (TFC) ($)	Total Variable Costs (TVC) ($)
1	100	120
2	100	200
3	100	290
4	100	430
5	100	590

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ECON 2350 Chapter Notes -Competitive Equilibrium, Economic Equilibrium, Perfect Competition

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