Suppose That There Are 80 Firms in a Market,each with the Following

question 111

Essay

Suppose that there are 80 firms in a market,each with the following cost function:
C(q)= 100 + 4q²
a.Derive the short-run market supply curve.
b.Suppose the market demand is
Q_D = 1280 - 30p
Find the equilibrium market quantity and price.
c.How much output will each firm produce? How much profit is each firm making?

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Definitions:

Average Rate

The mean quantity or figure computed by dividing the sum of all measured quantities by the number of quantities.

Above Average Profits

Earnings that exceed the norm for a particular industry or sector, often resulting from competitive advantages or efficient operations.

Controls Small Share

The act of managing or influencing a minor portion of the market or resources.

One Seller

Indicates a market structure known as a monopoly, where a single company or entity controls the entire supply of a product or service, facing no competition.