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Anyone here good with economics?
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| S-a-M-u-E-l |
if ...
the industry demand curve is Q=1800-200P
the inverse is P=9-0.005Q
Long run Avg. Cost is $1.5 for all levels of output
how do i calculate the market output, price, consumer surplus, and producer surplus both for perfect competition and monopoly? |
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| Krypton |
| quote: | Originally posted by S-a-M-u-E-l
if ...
the industry demand curve is Q=1800-200P
the inverse is P=9-0.005Q
Long run Avg. Cost is $1.5 for all levels of output
how do i calculate the market output, price, consumer surplus, and producer surplus both for perfect competition and monopoly? |
That must be a class I've yet to take. What class is this? I'm only in my first year anyways.
Stocks, I can talk all day about :). |
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| S-a-M-u-E-l |
| this is intermediate microeconomics, its getting pretty rough. For some reason I'm not getting this problem |
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| all-nite-freak |
| ask your local crack dealer. |
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| chadmk3 |
| quote: | Originally posted by S-a-M-u-E-l
if ...
the industry demand curve is Q=1800-200P
the inverse is P=9-0.005Q
Long run Avg. Cost is $1.5 for all levels of output
how do i calculate the market output, price, consumer surplus, and producer surplus both for perfect competition and monopoly? |
you need to get like variables and work from there.
P = (1800 - Q)/200
then you plug in the other equation to solve for Q.
to solve for price, plug Q into the inverse P equation.
That is the monopoly price. perfect competition price is $1.5 because in that market firms are free to enter and leave and only make normal profits. |
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| S-a-M-u-E-l |
| that doesnt work, because they are inverses...they are essentially the same things |
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| Ozoned12 |
| lol we should make a economics thread... |
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| echosystm |
wholy crap :(
and i thought d/s/prod. graphs were hard
*not looking forward to 2nd year microeco* |
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| Jocker |
| quote: | Originally posted by chadmk3
you need to get like variables and work from there.
P = (1800 - Q)/200
then you plug in the other equation to solve for Q.
to solve for price, plug Q into the inverse P equation.
That is the monopoly price. perfect competition price is $1.5 because in that market firms are free to enter and leave and only make normal profits. |
lol. |
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| chadmk3 |
| quote: | Originally posted by S-a-M-u-E-l
that doesnt work, because they are inverses...they are essentially the same things |
plug P into the original equation |
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| chadmk3 |
| quote: | Originally posted by Jocker
lol. |
whats funny jocker ? dont see you solving much ? |
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