Perfectly Competitive Markets
Not what you're looking for?
The excel is attached, please advise how to go about solving
Market demand schedule for noodles
Price Q Demanded
5.4 50200
6.4 45200
7.4 40000
8.4 35000
9.4 30000
10.4 24800
11.4 19800
12.4 14800
THe market isperfectly cmpetitive wih constant input prices and each firm has the same cost structure from the table beow
Output Marginal Cost AVC ATC
150 6 8.8 16.5
200 6.4 7.8 13.6
250 7 7 11.64
300 7.65 7.1 10.97
350 8.4 7.2 10.52
400 10.4 7.5 10.4
450 12.4 8 10.58
500 12.7 9 11.32
Initially there are 100 firms in the industry
1) what is the market price and output in the short run?
2) what is the ecomonic profit of each firm in the short run?
3)what is the shutdown point for firms in the short run?
4)what is the long run equilibrium price and the number of firms?
Purchase this Solution
Solution Summary
Perfectly competitive markets are assessed. The market price and output in the short run are given.
Purchase this Solution
Free BrainMass Quizzes
Pricing Strategies
Discussion about various pricing techniques of profit-seeking firms.
Basics of Economics
Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.
Elementary Microeconomics
This quiz reviews the basic concept of supply and demand analysis.
Economics, Basic Concepts, Demand-Supply-Equilibrium
The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.
Economic Issues and Concepts
This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.