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Question: C Problemsland Answer either Problem i or Problem 2below (26 points each). Problem 1. Questions (...
Question: C Problemsland Answer either Problem i or Problem 2below (26 points each). Problem 1. Questions (...Problem 1 a to
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Show transcribed image text c Problemsland Answer either Problem i or Problem 2below (26 points each). Problem 1. Questions (a) to (c) You are analyzing a market for high quality bricks. Suppose that in the short run, each producer (firm) marginal cost is given by for SMC 20+ 49. (and min AVC 20), where q the firm's out in number of boxes of bricks). The market is perfectly is competitive and each firm behaves so as to maximize profit. Important note: Question (c) do not require a nut answer. To some extent, it can be answered separately from questions (a) and (b). (a) (6 points) Write the equation that describes the relationship between the price of a box of bricks (F) and a firm's quantity supplied. Now add the following information about demand. The market demand for bricks is given by 10P Q 2200 where Q is the quantity and Pis the price. Also assume that there are 40 identical firms in the market for bricks. Every firm has the short run marginal cost function given above. (b) (o points) What are the price and quantity sold equal to in the short run equilibrium? Show your work.

c Problemsland Answer either Problem i or Problem 2below (26 points each). Problem 1. Questions (a) to (c) You are analyzing a market for high quality bricks. Suppose that in the short run, each producer (firm) marginal cost is given by for SMC 20+ 49. (and min AVC 20), where q the firm's out in number of boxes of bricks). The market is perfectly is competitive and each firm behaves so as to maximize profit. Important note: Question (c) do not require a nut answer. To some extent, it can be answered separately from questions (a) and (b). (a) (6 points) Write the equation that describes the relationship between the price of a box of bricks (F) and a firm's quantity supplied. Now add the following information about demand. The market demand for bricks is given by 10P Q 2200 where Q is the quantity and Pis the price. Also assume that there are 40 identical firms in the market for bricks. Every firm has the short run marginal cost function given above. (b) (o points) What are the price and quantity sold equal to in the short run equilibrium? Show your work.