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ECON 705 Module 5 Assignment

ECON 705 Module 5 Assignment
Suppose the market demand and supply functions are QD= 220 – 1.6P and QS= 4P – 116.You have just graduated and moved to this city; as a new MBA and an entrepreneur, you areconsidering entering the market for this product.
  1. Determine the equilibrium price and quantity in this market.
  2. You’ve researched and found that most firms in the market currently experience costssuch that TC = 30 + 65Q – 14Q2+ 2.4Q3. Determine whether or not you should enter thismarket. Use graphs to support your answer.
  3. Due to unforeseen delays, you don’t enter the market. However, a year later the marketsupply has changed to QS= 4P – 60. Are you surprised at this shift in supply?
  4. Given the new supply conditions, determine whether or not you should enter the market.

ECON 705 Module 5 Assignment

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