--%>
Assignment Help - homework help

Question on ATC and MC

A perfectly competitive market within the long period:

Data
         firm A:  ATC = y2   4y + 12 and MC = 3y2 – 8y + 12
         firm B:  ATC = y2   4y + 10 and MC = 3y2 – 8y + 10
         firm C:  ATC = y2   4y + 8 and MC = 3y2 – 8y + 8
         market demand curve:  ym = 200   20py
Questions
a. Suppose that the minimum ATC for each of the firms takes place when they generate two units of output.  If the auctioneer calls out a market price of $6.00 that firm will ought to leave the market and why.
b. Find out the long period equilibrium market price, equilibrium market output, and the number of firms into the market.
c. If the market demand curve shifted towards the right and becomes 300 – 15py what would be the new equilibrium market price & market output?
d. Do the results of (b) and (c) support a supply and demand determination of the market price? Describe.

   Related Questions in Microeconomics

  • Q : Price consistent with profit-maximizing

    HoloIMAGine has patented a holographic technology which creates 3-D photography obtainable to consumers. So the price consistent along with HoloIMAGine's profit-maximizing output would be of: (1) price P1. (2) price P2. (3) price

    		•
  • Q : Hicks Model of Collective Bargaining I

    I have a problem in economics on Hicks Model of Collective Bargaining. Please help me in the following question. The period of union strikes and the equilibrium wage rate at conclusion of a strike are the focus of: (i) Taft-Hartley Act of 1948. (ii) B

    		•
  • Q : Most efficient technology at the lowest

    When all goods are produced in highly competitive markets as well as there are no externalities, goods tend to be manufactured: (i) relatively inefficiently. (ii) along with the most efficient technology at the lowest price. (iii) along with maximum p

    		•
  • Q : Involvement of price makers firms

    Price-maker firms would most likely comprise: (1) a tomato farmer in California. (2) a sheep herder who produces wool in a remote part of New Zealand. (3) a stock broker who contacts customers through the internet. (4) a rural grocery store. (5) the b

    		•
  • Q : Demand and Supply-Production to double

    When Mary usually quaffs three glasses of Lost Horizons Cabernet Sauvignon every day, her demand for her favorite vintage will be least probable affected by: (i) The plague of grape worms ruining the bouquet of Lost Horizons Cabernet (ii) Receiving a $2 an hour pay hi

    		•
  • Q : Demonstrate supply curve for price

    The quantity supplied is ever more sensitive as output increases, therefore the price elasticity of supply raises as the price raises for the supply curve demonstrated in: (w) Panel A. (x) Panel B. (y) Panel C. (z) Panel D.

  • Q : Reason of Financial Intermediation The

    The fundamental reason for financial intermediary’s presence is to: (1) Facilitate beginning new business firms by employing internal financing. (2) Help business organizations comply with laws needing the financial intermediation. (3) Minimize

    		•
  • Q : Transaction Costs-Process of trial and

    In an uncertain globe, people are supposed to try to make best use of their satisfaction by: (1) Determining in advance the mixture of goods that maximizes the utility and then purchasing this mix. (2) The procedure of trial and error. (3) Making marginal decisions ti

    		•
  • Q : Absolute and relative price is the

    is the price in the law of demand an absolute price or a relative price

    		•
  • Q : Breaking natural monopoly Breaking a

    Breaking a natural monopoly within a number of competing firms would probably: (w) increase output and lower price to consumers. (x) reduce output and raise price to consumers. (y) reduce efficiency but lower price. (z) have no effect on output or pri

    		•