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Intermediate Microeconomics and Its Application 12th Edition by Walter Nicholson,Christopher Snyder
Edition 12ISBN: 978-1133189022Intermediate Microeconomics and Its Application 12th Edition by Walter Nicholson,Christopher Snyder
Edition 12ISBN: 978-1133189022 Exercise 32
Suppose there are 100 identical firms in the perfectly competitive notecard industry. Each firm has a short-run total cost curve of the form: 
and marginal cost is given by
a. Calculate the firm's short-run supply curve with q (the number of crates of notecards) as a function of market price (P).
b. Calculate the industry supply curve for the 100 firms in this industry.
c. Suppose market demand is given by Q =- 200P + 8,000. What will be the short run equilibrium price-quantity combination?
d. Suppose everyone starts writing more research papers and the new market demand is given by Q =- 200P + 11,200. What is the new short-run price-quantity equilibrium?
How much profit does each firm make?
and marginal cost is given by
a. Calculate the firm's short-run supply curve with q (the number of crates of notecards) as a function of market price (P).
b. Calculate the industry supply curve for the 100 firms in this industry.
c. Suppose market demand is given by Q =- 200P + 8,000. What will be the short run equilibrium price-quantity combination?
d. Suppose everyone starts writing more research papers and the new market demand is given by Q =- 200P + 11,200. What is the new short-run price-quantity equilibrium?
How much profit does each firm make?
Explanation
Verified
Verified
a)For short run, supply curve condition ...
Intermediate Microeconomics and Its Application 12th Edition by Walter Nicholson,Christopher Snyder
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