Can someone show me how to get the answers on this. I am at a total loss. 1. A p
ID: 1178404 • Letter: C
Question
Can someone show me how to get the answers on this. I am at a total loss.
1. A perfectly competitive industry has demand curve: P = 100 - .5Q, where Q is total output produced. All firms in the industry have identical technology and face the same cost curve: C(Q) = 500 + 10Q + 0.5Q2 . There are 10 firms in the industry.
a. Derive the supply curve for a typical firm in the industry.
b. Derive the industry supply curve.
c. Find the equilibrium price and quantity.
d. How much profit is the typical firm making?
e. Is this a short run or long run equilibrium? Explain in words and illustrate using graph(s).
Explanation / Answer
Managerial economics focuses on using economic principles and data to make decisions. So it tailors the economics towards management. For instance, a store manager is thinking of raising prices. Something that is a management decision that has to be made.
But since there's also economics here, it's important for that manager to have some understanding of how that decision effects things economically. So an understanding of econ can help managers make better decisions. And see the the consequences of going one way vs another. So it bridges the gap between management and econ.
Source(s):
I teach economics on the college-level. And have degrees in both economics and finance, plus advanced schooling in accounting.