{"id":106344,"date":"2022-01-26T08:54:00","date_gmt":"2022-01-26T08:54:00","guid":{"rendered":"https:\/\/essayparlour.com\/paperhelp\/?p=106344"},"modified":"2022-01-26T08:54:00","modified_gmt":"2022-01-26T08:54:00","slug":"suppose-that-the-potential-customers-for-hair-braiding-in-a","status":"publish","type":"post","link":"https:\/\/essayparlour.com\/paperhelp\/business-economics-2\/suppose-that-the-potential-customers-for-hair-braiding-in-a\/","title":{"rendered":"Suppose that the potential customers for hair braiding in a"},"content":{"rendered":"<table style = 'table-striped table-bordered table-hover' responsive='true'>\n<tr>\n<th>Question<\/th>\n<\/tr>\n<tr>\n<td>Suppose that the potential customers for hair braiding in a city consider hair braiding to be identical and that the market is perfectly competitive. Hair braiding requires special skills so the supply of workers in this industry is upward-sloping, and the wages earned by hair braiders increase as the industry output increases. Firms in this market face the following total cost:<br \/>\n TC = Q3 &#8211; 8Q2 + 20Q + W<br \/>\n where Q is the number of hair braidings and W is the daily wage paid to workers. The wage, which depends on total industry output, equals W = 0.1NQ, where N is the number of firms. Market demand is QD = 500 &#8211; 20P.<br \/>\n a. How does average total cost for the firm change as industry output increases? What does this relationship imply for industry&#8217;s long-run supply curve?<br \/>\n b. Find the long-run equilibrium output for each firm.<br \/>\n c. How does the long-run equilibrium price change as the number of firms increases?<br \/>\n d. Find the long-run equilibrium number of firms and total industry output.<br \/>\n e. Find the long-run equilibrium price.<br \/>\n f. Suppose that demand increases to QD = 1,000 &#8211; 10P. Find the new long-run competitive equilibrium. Does this match your prediction about the long-run supply curve from part (a)?<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"<p>Question<\/p>\n<p>\nSuppose that the potential customers for hair braiding in a city consider hair braiding to be identical and that the market is perfectly competitive. Hair braiding requires special skills so the supply of workers in this industry is upward-sloping, and <\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[42],"tags":[],"class_list":["post-106344","post","type-post","status-publish","format-standard","hentry","category-business-economics-2"],"_links":{"self":[{"href":"https:\/\/essayparlour.com\/paperhelp\/wp-json\/wp\/v2\/posts\/106344","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/essayparlour.com\/paperhelp\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/essayparlour.com\/paperhelp\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/essayparlour.com\/paperhelp\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/essayparlour.com\/paperhelp\/wp-json\/wp\/v2\/comments?post=106344"}],"version-history":[{"count":1,"href":"https:\/\/essayparlour.com\/paperhelp\/wp-json\/wp\/v2\/posts\/106344\/revisions"}],"predecessor-version":[{"id":106345,"href":"https:\/\/essayparlour.com\/paperhelp\/wp-json\/wp\/v2\/posts\/106344\/revisions\/106345"}],"wp:attachment":[{"href":"https:\/\/essayparlour.com\/paperhelp\/wp-json\/wp\/v2\/media?parent=106344"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/essayparlour.com\/paperhelp\/wp-json\/wp\/v2\/categories?post=106344"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/essayparlour.com\/paperhelp\/wp-json\/wp\/v2\/tags?post=106344"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}