Economics

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KINDLY DO WELL AND IN DETAILS. DO NOY USE THOSE SOLUTIONS I SEE IN CHEGG AND OTHER PLACES, THEY ARE INACCURATE AND DIFFERENT FROM THESE QUESTIONS. CHECK THESE EQUATIONS WELL AND YOU WILL SEE THAT THEY ARE DIFFERENT. THE EQUATIONS ARE DIFFERENT.

Show and explain all calculations. Provide detailed economic reasoning.

1. A competitive firm’s short run total cost function is given by

(a) Calculate the profit maximizing output and the resulting profit when price is $30.

(b) Calculate the profit maximizing output and the resulting profit when price is $80.

2. In a perfectly competitive industry each producer has a long run total cost function given by

where q denotes the output of the individual firm.

The market demand for the product is

where Q and P denote the market output and price respectively.

(a) Calculate the optimal output produced by each firm at the long run competitive equilibrium (LRCE).

(b) Calculate the market price and market output at the LRCE.

(c) Calculate the number of firms at the LRCE.

1

Q14805P

=-

32

TCq16q100q120

=-++

32

LTC q24q200q

=-+