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ECO - The chair-making industry currently consists of 90 producers

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Question;The chair-making industry currently consists of 90 producers, all of whom operate with the identical short-run total cost curve STC(Q)=500+3Q2, where Q is the annual output of a firm. Only $200 of each firm?s fixed cost is sunk. The market demand curve for lamps is D(P)=2880-P, where P is the market price.a) What is the marginal cost curve for each firm?b)Compute the individual firm?s shutdown pricec) What is the individual firm?s short-run supply curve? [Write the formula(s) for quantity as a function of price.]d) What is the short-run market supply curve? [Write the formula(s) for quantity as a function of price.]e) Determine the short-run equilibrium price, total market quantity, and quantity per firm in this industry

 

Paper#56738 | Written in 18-Jul-2015

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