Home » There are currently 100 identical firms in the perfectly competitive gadget manufacturing industry, each having short-run total costs given by STC=…

There are currently 100 identical firms in the perfectly competitive gadget manufacturing industry, each having short-run total costs given by STC=…

4. There are currently 100 identical firms in the perfectly competitive gadget manufacturing industry, each having short-run total costs given bySTC= 0.5q^2 +10q +5where q is the output of gadgets per day.a.What is the short-run supply curve for each firm in the industry? What is the short-run supply curve for the industry as a whole,Qs?b.Suppose the market demand for gadgets is given byQd = 1100-50pWhat is the equilibrium price and quantity in this market? What will each firm’s total short-run profits be?c.Graph the market demand and supply curves and compute total producer surplus.d.Show that the total producer surplus you calculated in part (c) is equal to total industry profits plus industry short-run fixed costs.e.Suppose the government imposed a tax of $3 on each gadget sold. How would this tax change the market equilibrium?f.How would the burden of this tax be shared between sellers and buyers of gadgets.g.Calculate the total loss in producer surplus as a result of the tax on gadgets. Show that this loss equals the change in total short-run profits in the gadget manufacturing industry.

Show more







Calculate Your Essay Price
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Order your essay today and save 10% with the coupon code: best10