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General Equilibrium

New Equilibrium Price and Quantity

6. Assume Psub and Tech is zero for all sections EXCEPT for (vi) below (Double Shift). i. Market Equilibrium: What is the equilibrium price and equilibrium quantity for and ? ii. Elasticity: What is the elasticity at the equilibrium price and output level? iii. Producer and Consumer Surplus: What are the Consumer and

Finding optimum price and output levels..

Perfect Competition Given the following equations: Qd=-1000P+Income+11000 TC=(1/70)q^2-(25/35)q+100 MC=(1/35)q-(25/35) Number of firms =85 Assume Income =11000. i.What is the market supply equation? ii.What is the market equilibrium price ? iii.What is the market equilibrium quantity? iv.What is the profit maximiz


You have opened your own word-processing service. You bought a personal computer, and paid $5,000 for it. However, due to the cost changes in the computer industry, the current price of an equivalent machine is $2,500. You could sell any used machine for $1,000. If you were not word processing, you could earn $20,000 per year at

Please see the attached file.

I am trying to figure out these last three questions and I provided some study notes of mine. Could someone please provide me with thorough and correct explanations for these three questions. Thank you!

Oligopoly Market

The majority of the worldâ??s diamonds comes from Country A and Country B. Suppose that the marginal cost of mining a diamond is $1,000 per diamond and that the demand schedule for diamonds is as follows: Price Quantity $ 6,000 5,500 5,000 6,500 4,000 7,500 3,000 8,500 2,000 9,500 1,000 10,500 If there were

Perfect Competition: sample question

A representative firm with long-run total cost given by TC = 20 + 20q + 5q2 operates in a competitive industry where the short-run market demand and supply curves are given by QD = 1,602 - 40P and QS = - 400 + 20P. If it continues to operate in the long run, its profit-maximizing level of output is

Tax Revenue Microeconomics

Use the graph below that shows the effect of a $4 per-unit tax on suppliers to answer the following questions: a. What are equilibrium price and quantity before the tax? After the tax? b. What is producer surplus when the market is in equilibrium before the tax? After the tax? c. What is consumer surplus when the market is

Supply and Demand Equilibrium Example Questions

Explain how demand, elasticity, and total revenue are all related to each other. Explain this relationship using at least two examples that incorporates all three concepts. Here is an example of what the response should be? And provide an example. If demand is elastic, an increase in price will cause a(n) _________ in t

Monopolistic Competition & Oligopoly

Explain which market structure this firm operating in attached file. Compare the long-run quantity and price to those of a perfectly competitive firm. What accounts for the difference? Is the equilibrium price greater than, equal to, or less than marginal cost? Why or why not?

Game Theory in Marketing

In the limit pricing payoff matrix, Coa can choose a given row of outcomes by offering a limit price(up) or monopoly price (down). Han can choose a given column of outcomes by choosing to offer a limit price (left) or monopoly price (right). Neither firm can choose which cell of the payoff matrix to obtain; the payoff for each f

the equation for the aggregate expenditure (AE) function

Suppose you were given the following information for an economy without government spending, exports, or income. C is desired consumption, I is desired investment, and Y is income. C and I are given by: C = 1400 + 0.8Y I = 400 a) What is the equation for the aggregate expenditure (AE) function? b) Applying the equilibr

Surplus and Shortage of Fish

I need help with this assignment Suppose the total demand for fish and the total supply of fish per month in the Kansas City fish market are as follows: Demand and supply of fish Price Quantity demanded Qua

Determining Equilibrium Price Level under Perfect Competition

In 2008, the box industry was perfectly competitive. The lowest point on the long-run average cost curve of each of the identical box producers was $4, and this minimum point occurred at an output of 1,000 boxes per month. THe market demand curve for boxes was Qd = 140,000 - 10,000P where P was the pric

Cournot equilibrium outputs

HOW MUCH ? 1. Suppose two rival firms face the following industry demand curve, and respective cost curves: P = 500 - q1 - q2 (Market demand) TC1 = 50q1 and TC2 = 50q2 (Respective total cost curves for firm 1 and 2). MC1 = 50 and MC2 = 50 (Respective marginal cost curves for firm 1 and 2) a.) Find the Cournot equi

Short run/supply and demand curve

1) A product's Demand Curve is: Qd = - P + 25, and its Supply Curve is: Qs = 10 + 2P. Algebraically determine the equilibrium price and quantity. 2. The figure below shows a firm in a perfectly competitive market: a. Determine the Shut- down Price b. Identify the firmâ??s short run

Economic Factors

Industry A has 20 firms and a Concentration Ratio (CR) of 30% * What is the name for this type of industry? * Describe some of this industry's characteristics. * If you were in this industry and there was an increased demand for the product that pushed up the price of goods, what long

Profits in long run

You are the manager of a monopolistically competitive firm. The present demand curve you face is P=100-4Q. Your cost function is C(Q)=50+8.5Q2. a. What level of output should you choose to maximize profits? b. What price should you charge? c. What will happen in your market in the long run? d. Calculate the profit and expl


Use the graph in the second column of page 257 under question 17 to answer the following. It shows the marginal cost and average total cost curves for the shoe store Zapateria, a perfectly competitive firm. a. How many pairs of shoes will Zapateria produce if the market price of shoes is $70 a pair? b. What is the total profit Z

Markets, Demand and Supply and the Price System

3.      Using the following schedule, define the equilibrium price and quantity. Describe the situation at a price of $10. What will occur? Describe the situation at a price of $2. What will occur? Price Quantity Demanded Quantity Supplied $1 500 100 $2 400 120 $3 350 150 $4 320

Economics Help

This is a sample of the type of questions that will be on a test. See attached.

Duopoloists and Cartel

Assume that two companies (A and B) are duopolists who produce identical products. Demand for the products is given by the following linear demand function: P = 200 - QA - QB where QA and QB are the quantities sold by the respective firms and P is the selling price. Total Cost functions for the two companies are TCA =

Game theory: Solution set

1. Some games of strategy are cooperative. One example is deciding which side of the road to drive on. It doesn't matter which side it is as long as everyone chooses the same side. Otherwise, everyone may get hurt. Driver 1 Driver 2 Left Right Left 0,0 -1000 -1000 Right -1000, -1000 0,0 a. Does either player have

Discussing the Dominant Strategy

Suppose two competitors, Coa, Inc., and Han, Inc., are locked in a bitter pricing struggle in the aluminum industry. In the limit pricing payoff matrix, Coa can choose a given row of outcomes by offering a limit price ("up") or monopoly price ("down"). Han can choose a given column of outcomes by choosing to offer a limit price


A firm produces digital watches on a single production line serviced during one daily shift. The total output of watches depends directly on the number of labor-hours employed on the line. Maximum capacity of the line is 120,000 watches per month; this output requires 60,000 hours of labor per month. Total fixed costs come

Several questions

1. The idea that markets adjust rapidly enough to eliminate profit opportunities immediately is called________ a. perfect information. b. market manipulation. c. market efficiency. d. market foolishness. e. amateurs running the market. 2. Seeking to own stocks of different kinds in many mark

Price ceiling

The government has set price ceiling on "whatever the product is", so that there is a shortage. That industry complains to the government that the ceiling price is far below the equilibrium price. The issues would be quality sold = quality bought, the amount customers are prepared to buy at the ceiling price Qd, is significantly