Suppose there are 100 firms each with a short run total cost of STC = q2 + q + 10, so that marginal cost is MC = 2q +1. The market supply curve isQuestion 2Select one:a.QS = -100 + 100Pb.QS = -0.5 + 0.5Pc.QS = -50 + 50P2d.QS = -50 + 50P
Question
Suppose there are 100 firms each with a short run total cost of STC = q2 + q + 10, so that marginal cost is MC = 2q +1. The market supply curve isQuestion 2Select one:a.QS = -100 + 100Pb.QS = -0.5 + 0.5Pc.QS = -50 + 50P2d.QS = -50 + 50P
Solution
The question seems to be asking for the market supply curve given the marginal cost (MC) equation.
The marginal cost (MC) is the derivative of the total cost (TC) with respect to quantity (q). In this case, MC = 2q + 1.
In a perfectly competitive market, firms set their output (q) such that the price (P) equals the marginal cost (MC). Therefore, we can set P = MC to find the quantity supplied by each firm:
P = 2q + 1 => q = (P - 1) / 2
Since there are 100 firms, the total quantity supplied in the market (QS) is 100 times the quantity supplied by each firm:
QS = 100 * q => QS = 100 * (P - 1) / 2 => QS = 50P - 50
So, the correct answer is c. QS = -50 + 50P.
Similar Questions
Suppose there are 100 firms each with a short run total cost of STC = q2 + q + 10, so that marginal cost is MC = 2q +1. If market demand is given by QD = 1050 - 50P, profit to the firm will beQuestion 3Select one:a.9.b.15.c.5.d.6.
Suppose there are 100 firms each with a short run total cost of STC = q2 + q + 10, so that marginal cost is MC = 2q +1. If market demand is given by QD = 1050 - 50P, what is the equilibrium price?Question 5Select one:a.50.b.10.c.5.d.11.
Suppose a chemical company is in a perfectly competitive industry and has a short run total cost curve of TC = 1/3q3 + 5q2 + 10q + 10 and a short run marginal cost of SMC = q2 + 10q + 10. At the price of 49, how many will be produced?Question 4Select one:a.3.b.15.c.0.d.5.
Assume that all firms in a competitive industry have cost curves given by the following: TC = 128 +8q +2q2. Further, the market demand curve is given by: p = 72-2Q. In the long-run market equilibrium, profit for each firm equals:
Find the new market supply by the short-run supply curves for all the firms in the market. (Please use one word for the blank)
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.