Beruflich Dokumente
Kultur Dokumente
14 12
Output T cost TR (i) Profit TR (i) Profit
0 10 0 -10 0 -10
1 21 14 -7 12 -9
2 30 28 -2 24 -6
3 41 42 1 36 -5
4 54 56 2 48 -6
5 69 70 1 60 -9
4 MR: 24
Q TC MC ATC AVC
0 14 0 0 MR= 12
1 38 24 38.0 24.0
2 48 10 24.0 17.0
3 62 14 20.7 16.0
4 80 18 20.0 16.5 MR = 20
5 102 22 20.4 17.6 MR = 24
6 128 26 21.3 19.0
* Firms with identical cost structure will enter the industry at any price above the lowest ATC po
5
Demand Supply
P Q output MC AVC ATC
3.65 500,000.00 150 6 8.8 15.47
4.4 475,000.00 200 4.6 7.8 11.8
5.2 450,000.00 250 7 7 11
6 425,000.00 300 7.65 7.1 10.43
6.8 400,000.00 350 8.4 7.2 10.06
7.6 375,000.00 400 10 7.5 10
8.4 350,000.00 450 12.4 8 10.22
9.2 325,000.00 500 20.7 9 11
10 300,000.00
10.8 275,000.00 - if each of the 1000 firms, has identical cost structure,
11.6 250,000.00 firm's output by 1000.
- we will then have the MC at every level of market out
11.4 225,000.00
- since MC is a representation of Supply curve - above t
equilibrium occurs when Qs=Qd. this happen at the pri
output is 350,000.00 units. (divide by 1000 you get per
- each firm make economic loss equal = (P-ATC)*Q = (5
- definitely, firms exit this industry.
- if each of the 1000 firms, has identical cost structure,
firm's output by 1000.
- we will then have the MC at every level of market out
- since MC is a representation of Supply curve - above t
13.2 200,000.00 equilibrium occurs when Qs=Qd. this happen at the pri
14 175,000.00 output is 350,000.00 units. (divide by 1000 you get per
- each firm make economic loss equal = (P-ATC)*Q = (5
- definitely, firms exit this industry.
- The minimum insentive for firms to stay in the industr
Economic loss -581 Since P = MC, this exactly happen when each firm prod
P=10.
Firms remaining 750 - On the demand side, at P = 10, market demand is 30
- Dividing total Quantity demand by each firm's output,
firms remaining.
6 980
Demand Supply
P Q output MC AVC Old ATC New ATC
3.65 500,000.00 150 6 8.8 15.47 22.00
4.4 475,000.00 200 4.6 7.8 11.8 16.70
5.2 450,000.00 250 7 7 11 14.92
6 425,000.00 300 7.65 7.1 10.43 13.70
6.8 400,000.00 350 8.4 7.2 10.06 12.86
7.6 375,000.00 400 10 7.5 10 12.45
8.4 350,000.00 450 12.4 8 10.22 12.40
9.2 325,000.00 500 20.7 9 11 12.96
10 300,000.00
10.8 275,000.00
- Everything stay the same in the short run. Output is
11.6 250,000.00 - Due to the increased fixed cost, new ATC at this level
11.4 225,000.00 make economic loss equal = (P-ATC)*Q = (1561).
13.2 200,000.00 - definitely, firms exit this industry.
14 175,000.00 - The minimum insentive for firms to stay in the indust
Since P = MC, this exactly happen when each firm prod
P=12,40.
- On the demand side, at P = 12,40, market demand i
Economic loss -1561 units.
- Dividing total Quantity demand by each firm's output
Firms remaining 444 444 firms remaining.
7
Demand Supply
New P D output MC AVC ATC
2.95 500,000.00 150 6 8.8 15.47
4.13 450,000.00 200 4.6 7.8 11.8
5.3 400,000.00 250 7 7 11
6.48 350,000.00 300 7.65 7.1 10.43
7.65 300,000.00 350 8.4 7.2 10.06
8.83 250,000.00 400 10 7.5 10
10 200,000.00 450 12.4 8 10.22
11.18 150,000.00 500 20.7 9 11
8 You shouldn't need the solution for this… work it out yourself.
P(iii)
10
TR (i) Profit
0 -10
10 -11 25.0 AVC MC ATC
20 -10
23.0
30 -11
40 -14 21.0
50 -19
19.0
12 10 17.0
15.0
13.0
11.0
9.0
The short-run shutdown point (at price 10)- Also
the point at which the supply curve emerges
7.0
5.0
0 0.5 1 1.5 2 2.5 3 3.5 4
40.0
35.0
20 12
30.0
Profit
25.0 MC
-14
20.0 AVC
15.0 ATC
20
150,000.00
200,000.00 18
250,000.00 16
300,000.00
14
350,000.00
400,000.00 12
450,000.00
10
500,000.00
8
dentical cost structure, then we multiply each 6
,000
,000
,000
,000
,000
ry.
8
dentical cost structure, then we multiply each 6
200,000
250,000
300,000
100,000
150,000
350,000
ry.
ms to stay in the industry is when P>= ATC.
en when each firm produce 400 units, and
22
150,000.00
20
200,000.00
250,000.00 18
300,000.00 16
350,000.00
14
400,000.00
12
450,000.00
500,000.00 10
8
250,000
300,000
100,000
150,000
350,000
2,40, market demand is approx. 200,000.00
20
150,000.00
200,000.00 18
250,000.00 16
300,000.00
14
350,000.00
400,000.00 12
450,000.00 10
6
14
12
10
500,000.00
8
nits at price 7,65 6
200,000
250,000
300,000
100,000
150,000
350,000
shutdown point (at price 10)- Also
which the supply curve emerges
3 3.5 4 4.5
MC
AVC
ATC
5 6
TC
,000
,000
,000
,000
,000
,000
TC
TC
300,000 300,000
350,000 350,000
400,000 400,000
450,000 450,000
500,000 500,000
550,000 550,000
300,000
350,000
400,000
450,000
500,000
550,000