Question on ATC and MC, A perfectly competitive market within the long period: Data

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: y_m = 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.

View Complete Question

Related Questions in Microeconomics

Q : Price of input influencing goods supply

Elucidate how does change in price of input influence the supply of a good.

Q : Reflecting normal substitution by

When consumer demand for this industry’s product is relatively inelastic, in that case the curve reflecting normal substitution although the least price elasticity of market demand would be of: (i) curve A. (ii) curve B. (iii) curve C. (iv) curv

Q : Purely competitive industry in the long

For a purely competitive industry in the long run: (i) several firms exit therefore others may earn more than normal profits. (ii) established firms reap higher profits than newer firms. (iii) all resources are fixed for the industry as an entire. (iv

Q : Increasing elasticity of the demand for

The elasticity of the demand for labor tends to rise as there are raises within the: (1) amount of capital utilized in a production process. (2) rate of automation in an industry. (3) difficulty in substituting between different resources. (4) share o

Q : Occurrence of equilibrium in the

Long-run equilibrium occurs while: (w) MR = MC > P (x) P = MC = MR = ATC (y) ATC > P = MC(z) P = MR = MC = AFC I need a good answer on the topic of Economics problems. Please give me yo

Q : What drives market towards their

What drives market towards their equilibrium?

Q : Good illustration of oligopoly The

The tobacco industry within the United States is a good illustration of: (1) monopoly. (2) pure competition. (3) oligopoly. (4) corporate responsibility. (5) duopoly. I need a good answer on the topic of Economics

Q : Main cause of oligopolies A main cause

A main cause of oligopolies is: (w) mergers. (x) economies of scale. (y) barriers to entry. (z) all of the above. Please choose the right answer from above...I want your suggestion for the same.

Q : Featherbedding-Carpenter union problem

The carpenters union is capable to force agreement by the furniture manufacturer in Loblolly, North Carolina which the plant hire at least one carpenter per machine to ensure performance at such stations is proficient. This now outlawed strategy is termed as: (i) Feat

Q : Equilibrium price in short run The

The equilibrium prices for cranberries within the short run of: (w) P1. (x) P2. (y) P3. (z) P4.

Discover Q & A

Leading Solution Library

Avail More Than 1419138 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1930634
Asked

3,689

Active Tutors

1419138

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment