Questions tagged [equilibrium-price]
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How does perfect competition work?
I have made several other posts about this topic, but all the answers I got confused me even more. This is my attempt at making a comprehensive post that highlights my confusion about perfect ...
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Question about equilibrium price and surplus/excess supply
My question is regarding the image below:
It says “given a surplus, the price will fall quickly toward the equilibrium level of 6 dollars” but there will still be a quantity left over if the price ...
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How can an individual firm sell ANY quantity for the market price under perfect competition?
I keep hearing that under perfect competition, an individual firm can sell ANY quantity as long as they sell at the equilibrium price. But this doesn’t make sense to me. For the market supply and ...
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Calculating profit from price and cost
For a given item, if we know that the equilibrium price is 400 and the cost of manufacturing quantity $x$ of the item is $2x^3+900$, then how can I find the profit?
My initial thoughts are that this ...
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Why is this equilibrium price unique? (Varian exercise)
My questions refer to the first exercise in chapter one of Varian - Intermediate Microeconomics (9th edition). The exercise deals with an apartment rental market, an example explored in the first ...
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What does it mean when an economist talks about "equilibrium"
In economics, there are many equilibrium concepts, like equilibrium under perfect competition, Monopolist equilibrium, competitive equilibrium, general equilibrium, nash equilibrium, equilibrium price,...
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Price competition; finding the equilibrium expression for price and profit
This question deals regarding the price competition between two firms developing products that directly compete on the market. Fundamentally basing on the game theory and the Nash equilibrium, the aim ...
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Derivation of Surplus in Paul Romer's paper on "mathiness"
In this paper by P. Romer https://pubs.aeaweb.org/doi/pdfplus/10.1257/aer.p20151066
I'm wondering the Surplus $S$ was derived.
By using the given condition I found that $$q_0=m^{-\tfrac{1}{a+b}}N^{-\...
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What is the equilibrium price in this case?
From the Review Questions to Chapter 1: The Market in Hal Varian's Intermediate Microeconomics with Calculus, 9th ed.:
Suppose that there are 25 people who had a reservation price of $\\\$500$, and ...
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Analytical approach to estimate equilibrium price for Real Estate Property
I am looking to calculate the equilibrium price, i.e an optimal price that I can set without affecting demand and maximize revenue.
I've gathered historical data: occupancy rates, asking rents for ...
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Profit maximization, when $MC = P$, in a simple supply table and curve
Our economics school book states that the profits of a company are maximized when MC = P.
However, I am having some trouble wrapping my head around that.
For example, I have the following exercise:
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Time-dependent market-clearing equilibrium price
I'm working my way through Chiang and Wainwright's Fundamental Methods of Mathematical Economics (4th ed) while holed up at home. On p. 532, in exercise 16.4 2. (b), the authors ask you to find the ...
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