QUESTION 1 If the market quantity demanded and quantity supplied functions are:

Question

QUESTION 1

If the market quantity demanded and quantity supplied functions are:

QD = 238 - 3P
QS = 57 + 7P

and the firm's marginal cost function is:

MC = 4 + 4q

How many units will the firm choose to produce?

QUESTION 2

If the market quantity demanded and quantity supplied functions are:

QD = 2,358 - 16P
QS = 426 + 29P

and the firm's marginal cost function is:

MC = 4 + 6q

How many units will the firm choose to produce?

QUESTION 3

If the market quantity demanded and quantity supplied functions are:

QD = 160 - 3P
QS = 25 + 8P

and EVERY firm's marginal cost function is:

MC = 3 + 4q

How many firms will exist in the market?

QUESTION 4

If the market quantity demanded and quantity supplied functions are:

QD = 193 - 4P
QS = 72 + 9P

and EVERY firm's marginal cost function is:

MC = 3 + 4q

How many firms will exist in the market?

QUESTION 5

If the market quantity demanded and quantity supplied functions are:

QD = 215 - 3P
QS = 34 + 8P

and the firm's marginal cost function is:

MC = 2 + 5q

Assuming there are no costs other than marginal cost, what will be the profits of this firm?

QUESTION 6

If the market quantity demanded and quantity supplied functions are:

QD = 242 - 3P
QS = 70 + 9P

and the firm's marginal cost function is:

MC = 4 + 4q

Assuming there are no costs other than marginal cost, what will be the profits of this firm?

PLEASE SHOW WORK. THANK YOU!

Explanation / Answer

1.

Demand quantity , Q(D)= 238-3P

Supply quantity , Q(S)= 57 + 7P

The equilibrium price is given as :

Q(D)= Q(S)

238-3P = 57+7P

181 = 10 P

P = 18.1

Now the quantity is given as :

Q = 57+ 7(18.1)

= 183.7 units

Hence firm needs to produce 183.7 units to meed demand.

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