The variable cost for each firm is 12q^2.
Added by Jesse M.
Step 1
Step 1: The variable cost for each firm is given by the formula 12q^2, where q represents the quantity of output produced. Show more…
Show all steps
Your feedback will help us improve your experience
Azat Nurmukhametov and 69 other Microeconomics educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
Problems and Applications Q7 Consider a monopolistically competitive market with N firms. Each firm's business opportunities are described by the following equations: Demand: Q = 100N - P Marginal Revenue: MR = 100N - 2Q Total Cost: TC = 50 + Q^2 Marginal Cost: MC = 2Q As N rises, the demand for each firm's product decreases. How many units does each firm produce? - 400N - 25N - 25 - 25N What price does each firm charge? - 125N - 75N - 75N - 100N How much profit does each firm make? - 50 + 625N^2 - 1,875N^2 - 2,500N^2 - 50 - 1,250N^2 - 50 In the long run, firms will exist in this market.
Azat N.
The wood-pallet market contains many identical firms, each with the short-run total cost function STC(Q) = 400 + 5Q + Q^2, where Q is the firm's annual output (and all of the firm's $400 fixed cost is sunk). The corresponding marginal cost function is SMC(Q) = 5 + 2Q. The market demand curve for this industry is D(P) = 262.5 - P/2, where P is the market price. Each firm in the industry is currently earning zero economic profit. How many firms are in this industry, and what is the market equilibrium price?
Andrew D.
Assume that each firm has a cost function given by: C(q) = 30q + 1.5q^2. The market demand for their product is represented by the following demand equation: P = 300 - 3Q (where Q = q1 + q2, total output). a. If each firm acts to maximize its profits, taking its rivals' output as given (i.e. the firms behave as Cournot Oligopolists), what will be the equilibrium quantities selected by each firm? What is the total output and the market price? What are the profits for each firm?
Akash M.
Recommended Textbooks
Principles of Economics
Principles of Microeconomics for AP® Courses
Economics
Transcript
Watch the video solution with this free unlock.
EMAIL
PASSWORD