2. Suppose the wedding dress industry is a perfectly competitive constant cost industry. Suppose also that market demand

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2 Suppose The Wedding Dress Industry Is A Perfectly Competitive Constant Cost Industry Suppose Also That Market Demand 1 (58.75 KiB) Viewed 65 times

2. Suppose the wedding dress industry is a perfectly competitive constant cost industry. Suppose also that market demand for wedding dresses is described by Q-10,000 - 10P. Suppose individual firms have cost functions of LTC = 20,000+100q+242. a) how much does each firm produce in the long run b) What is the market price in the long run c) how many firms are there in the industry in the long run?(20 points) 3. Suppose demand in the perfectly competitive fish market can be described by the equation P = 10 - (Qd/2), while supply is described by P = 2 + (Qs/2) a) Calculate the equilibrium price and quantity b) Calculate the consumer surplus, producer surplus and total surplus c) What is the Marginal cost of this firm? (20 pts) 4. A monopolist has total revenues given by TR-450Q-5Q and Total costs given by TC=370+502 a) What are the profit maximizing price and output rates b) What would the profit maximizing price and output be if the firm made its decisions under a perfectly competitive market structure? (20 pts) 5. A local mini market is operating under perfect competition and estimates its short-run Total costs as TC=1000Q-300?+Q? a) Below which price should the firm shut down its operations b) What is the difference between the shut down and break-even levels of output? Explain (20pts). GOOD LUCK