Please explain step-by-step how to do these. thanks!

6) In the above diagrams assume the following: MC intersects AVC @ P= $8, Q=40 and MC intersects ATC @ P= $12, Q = 50. (Min MC =$ 4). In the market demand schedule on the right, at a price of $16, the quantity demanded = 6000, and at a price of $12 the quantity demanded rise to 7000.

a) What is the output of a typical firm when the market price is $16?

b) What is the lowest price at which the typical firm will stay in business in the short run?

c) If there are currently 100 firms in this industry. Draw the short run market supply curve.

A)
<br>The difficulty with this question is in cutting through the data and understanding it.
<br>Let us start with the question what do we want in part a ?
<br>To get the output of the firm when the price is $16, let us reinterpret the question: what is the quantity that the firm can sell when the market price is $16?
<br>Let us assume that the firm maximizes profit. Thus, marginal Cost = Marginal Revenue. The marginal revenue is the price the market is ready to pay which is $16. Marginal cost = ...

... the supply curve so that it intersects the vertical ... equation q = a + bp, q = quantity demanded or supplied, p = price For the demand curve, slope b ...

... curve. C. where the marginal cost curve intersects the demand curve. D ... curve. C. where the marginal cost curve intersects the demand curve. D ...

... aggregate demand curve shifts to the right. (bottom graph) For a given price, the aggregate quantity of output demanded is determined by the intersection of ...

... Equilibrium Point is indicated by point of intersection of DD ... there is a decrease in supply keeping demand constant. ... It is clear from the above graph that new ...

... is given by the vertical distance between the point at which the marginal cost curve (MC) intersects with the marginal revenue curve (MR) and the demand curve. ...

... The intersection of industry demand and supply curves determines the ... To illustrate this process, consider the following market demand curve where price is ...

... Equilibrium point is given by intersection of demand and supply curve. ... Equilibrium point is given by intersection of demand and supply curve. ...

... Suppose that Figure 7.4 shows a monopolist's demand curve, marginal revenue, and its ... MR and MC curves intersect each other at point d. corresponding output ...