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Given the demand and supply equations,
Qdx = 150 - 20Px and Qsx=-30+50Px, Find a) Equilibrium price; b) if market price is Rs3.50, what will be amount of surplus units?
Plz i want a proper solution 🙏
1. If a company sets aside $1,000,000 now into a contingency fund, how much will the company have in 2 years, if it does not use any of the money and the account grows at a rate of 10% per year?
The total cost function of a monopolistic producer of two goods is TC = 3x + xy + 4y, where x and y denote the number of units of good 1 and good 2, respectively.
If p1 and p2 denote the corresponding prices, then the demand function of each good is p1 = 60 − x + y and p2 = 40 + 2x − y. Find the maximum profit if the firm is contracted to produce a total of 200 goods.
Given the following demand and cost function, find the prices and output in each Market and the total profit, Assume that there are only two firms in the market.
P1 = 32 – 2Q1
P1 = 22 – Q2
TC = 10 + 2Q1 + Q2
Suppose that, there is a perfectly competitive industry where all the firms are identical with identical cost curves. Furthermore, suppose that a representative firm’s total cost is given by the equation TC = 100 + q2 + q where q is the quantity of output produced by the firm. You also know that the market demand for this product is given by the equation P = 1000 – 2Q where Q is the market quantity. In addition you are told that the market supply curve is given by the equation
P = 100 + Q.
i. What is the equilibrium quantity and price in this market given this
Information?
ii. The firm’s MC equation based upon its TC equation is MC = 2q + 1.
Given this information, what is the firm’s profit maximizing level of production, total revenue, total cost and profit at this market equilibrium? Is this a short-run or long-run equilibrium? Explain your answer.
3. Distinguish between market period, Short-run and long run. Does the consideration of period affect the price policy?
Perfectly Competitive firm faces a market price of birr 40 and has the following
Cost function: STC = 5800+ 20Q+0.02Q2.
A. What quantity of output is best for this firm in the short-run? Why?
B. Should firm attempt to change some price other than the market price of 40? Why or why not?
A monopolist’s demand and Average total has cost functions are given by
Q=250-5P
ATC =10 +40/Q
A. What will be the profit maximizing level of price and output?
B. What will be the firm’s total profit if it exercises first degree price discrimination?
C. Assume the monopoly can sell his product in two separated markets with
the following demand functions
Q1 =110-P1
Q2=140-4P2
A. Determine the profit maximizing level output in each market
B. What price should the monopoly sell each unit of output in each market?
C. In which market is the price high? Why?
Given the demand function P=150 -0.5Q and the total Cost function TC=8Q
A. Maximize profit for a monopoly firm
B. Maximize profit for a perfectly competitive firm
C. Calculate the profit that monopolist lost to act as a perfectly competitive firm
Given the following demand and cost function, find the prices and output in each Market and the total profit, Assume that there are only two firms in the market.
P1 = 32 – 2Q1
P1 = 22 – Q2
TC = 10 + 2Q1 + Q2
3. Suppose that, there is a perfectly competitive industry where all the firms are identical with identical cost curves. Furthermore, suppose that a representative firm’s total cost is given by the equation TC = 100 + q2 + q where q is the quantity of output produced by the firm. You also know that the market demand for this product is given by the equation P = 1000 – 2Q where Q is the market quantity. In addition you are told that the market supply curve is given by the equation
P = 100 + Q.
i. What is the equilibrium quantity and price in this market given this
Information?
ii. The firm’s MC equation based upon its TC equation is MC = 2q + 1.
Given this information, what is the firm’s profit maximizing level of production, total revenue, total cost and profit at this market equilibrium? Is this a short-run or long-run equilibrium? Explain your answer.
