Questions tagged [equilibrium-price]

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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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Market equilibrium when marginal cost is decreasing

I'm trying to solve this problem: Technology for producing $q$ gives rise to the cost function $c(q) = aq + bq^2$. The market demand for $q$ is $p = \alpha - \beta q$ (a) If $a > 0$, if $b < 0$,...
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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 ...
181 views

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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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 ... • 199 1 vote 0 answers 50 views 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 ... • 131 0 votes 1 answer 42 views 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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