Context: cost minimizing equilibrium condition in production in economics

cost minimizing equilibrium condition in production in economs

Two firms X and Y produce the samecommodity. Due to the productionconstraints, each firm is able to producepackages of 1, 3 and 5 units of the product.The cost of producing qx units for firm X is< [6 +2xq – 2qx + 5], and firm Y has theidentical cost function < [6 +2yq – 2qy + 5]for producing qy units. p is the price of oneunit for firm X. We assume that the marketis in equilibrium. The outcomes are theprofits of the firm shown in the form of amatrix A = [aij] (pay-off matrix). Write(i) a11, (ii) a22, (iii) a21, if the demandfunction D(p) is given by D(p) = 50 – p.

What can you say about the equilibrium quantity of production for a market with external costs?Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer.aThe equilibrium market quantity is too high and the equilibrium market price is too low, relative to the efficient point.bThe equilibrium market quantity is too low and the equilibrium market price is too high, relative to the efficient point.cThe equilibrium market quantity is too low and the equilibrium market price is too low, relative to the efficient point.dThe equilibrium market quantity is too high and the equilibrium market price is too high, relative to the efficient point.

Assume that a firm in a perfectly competitive industry faces a prevailing market price of $75 and has the following total cost schedule: Quantity: 0, 20, 40, 60, 80, 100, 120, 130, 140 TC: 300, 700, 1000, 1900, 2900, 4400, 6900, 10000, 15000 TR: 0, 1500, 3000, 4500, 6000, 7500, 9000, 9750, 10500 Profit/Loss: -300, 800, 2000, 2600, 3100, 3100, 2100, -250, -4500 MC: -, 20, 15, 45, 50, 75, 125, 310, 500 MR: 75, 75, 75, 75, 75, 75, 75, 75, 75 Given the circumstance in question 3c) if new firms were attracted to this market, what would be the main consequence for this competitive firm in terms of prices received; quantity produced and profit?

The economic problem occurs when we have: