3. Consider the demand for gasoline is P = 5-0.002q and the supply is P = 0.2 + 0.0049, calculate the amount of consumer

[answerhappygod]

3 Consider The Demand For Gasoline Is P 5 0 002q And The Supply Is P 0 2 0 0049 Calculate The Amount Of Consumer 1 (37.34 KiB) Viewed 21 times

3. Consider the demand for gasoline is P = 5-0.002q and the supply is P = 0.2 + 0.0049, calculate the amount of consumer surplus and producer surplus without government intervention. (2 Marks). 4. A firm total revenue curve is given by TR aQ - 20%. Is this a perfectly competitive firm? Explain why or why not. (2 Marks) 5. There are ten firms producing bicycles (q). The firms are identical with each firm having the following cost function C = 94 $ 94 - q3+ 99 , The market for bicycles is competitive (firms are all price takers) with demand for bicycles given by a 90 - 2p 1 a. At what price will firms shut down? (1 Mark). b. Derive the short run industry supply function. (1 Mark).