Suppose there are 500 identicsl competitivd firms producing widgets and assume the total cost curve for each firm is given as, TC= 5q2+wq+10 and marginal cost is given as MC=10q + w where w is the widget maker's wage and q is the firm's output. If w=$50 what is the equation of the firms short run supply curve? 1) what is the average firm's profit (losses) at the new price of $61? 2) is the average firm in the short-run or long run? given it's profit(losses) should the firm continue to operate? 3) what would you predict, based on the perfectly competitive model of markets, will happen in this industry in the long run
Suppose there are 500 identicsl competitivd firms producing widgets and assume the total cost curve for each firm is given as, TC= 5q2+wq+10 and marginal cost is given as MC=10q + w where w is the widget maker's wage and q is the firm's output. If w=$50 what is the equation of the firms short run supply curve? 1) what is the average firm's profit (losses) at the new price of $61? 2) is the average firm in the short-run or long run? given it's profit(losses) should the firm continue to operate? 3) what would you predict, based on the perfectly competitive model of markets, will happen in this industry in the long run
Chapter19: Externalities And Public Goods
Section: Chapter Questions
Problem 19.1P: A firm in a perfectly competitive industry has patented a newprocess for making widgets. The new...
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Suppose there are 500 identicsl competitivd firms producing widgets and assume the total cost curve for each firm is given as,
TC= 5q2+wq+10
and marginal cost is given as
MC=10q + w
where w is the widget maker's wage and q is the firm's output.
If w=$50 what is the equation of the firms short run supply curve?
1) what is the average firm's profit (losses) at the new price of $61?
2) is the average firm in the short-run or long run? given it's
3) what would you predict, based on the
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