VERY URGENTcan somebody help me to solve this problems?

2006-11-21 5:09 pm
one data is the market demand schedule for CDs is as follows:
Price($ per CD) n Quantity Demanded (thousands of CDs per week)
when P=3.65, the QD=500
when P=5.20, the QD=450
when P=6.80, the QD=400
when P=8.40, the QD=350
when P=10.00, the QD=300
when P=11.60, the QD=250
when P=13.20, the QD=200
when P=14.80, the QD=150

回答 (2)

2006-11-21 7:11 pm
✔ 最佳答案
1.
a) Market price = MR = MC = $8.40
b) at the equilibrium price $8.40, the QD = QS = 350 thousands of CDs per week
c) when there is 1,000 firms in the industry, 350 CDs produced by each firm (350,000 CDs / 1,000 firms)
d) economic profit is 0,
e) no firm in long run because the MR $8.40 cannot cover the ATC at all level of production.

2. Because it is a perfect competitive market, all competitors gets information without difficulty and no transaction cost. They will earn and produce to the level that no economic and accounting profit. Therefore, no firm will enter into the industry.
2006-11-21 6:43 pm
Price = $8.4
Output = 350,000
each firm produce 350


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