Skip to content
We use only essential cookies to keep you signed in and remember your preferences. See our Cookie Policy.
TestStop
MocksPracticeResourcesIndiaBlogPricing
Sign in
Questions › UoH › UoH 2016 › Q28
1 mark, −0.33Microeconomics › Perfect competition › Short-run supply of the firm and the industryHardabout 3 min

UoH 2016 Question 28: Perfect competition

There are 100 firms with identical cost functions in a perfectly competitive industry. The demand function for the industry is estimated to be

Qd=2,000−200PQ_d = 2{,}000 - 200PQd​=2,000−200P

If the cost function of a firm is TC=200−50Q+2Q2TC = 200 - 50Q + 2Q^2TC=200−50Q+2Q2, then the equilibrium price of the product is

Tap an option to check your answer.

Answer and worked solution

Checking your account…

Plain-text version

There are 100 firms with identical cost functions in a perfectly competitive industry. The demand function for the industry is estimated to be Q_d = 2,000 - 200P If the cost function of a firm is TC = 200 - 50Q + 2Q², then the equilibrium price of the product is (A) Rs. 9.93 (B) Rs. 3.33 (C) Rs. 16.35 (D) Rs. 14.98

Also written as: There are 100 firms with identical cost functions in a perfectly competitive industry. The demand function for the industry is estimated to be Q_d = 2,000 - 200P If the cost function of a firm is TC = 200 - 50Q + 2Q^2, then the equilibrium price of the product is

Perfect competition has come up 115 times in 7 exams since 2006.

What this question tests

This question is on Short-run supply of the firm and the industry, part of Perfect competition in Microeconomics.

The firm's supply curve above the shutdown point and how firm supplies add up to market supply.

TestStop has 8 past-paper questions on this subtopic.

Practise Perfect competitionMore on Short-run supply of the firm and the industry

Similar questions from other papers

  • GATE 2026 · Q61The market for torch is perfectly competitive. The market demand function for torch is given by X^d=min (400-p,0), p≥0, where p is the price of a torch. The market…
  • IIT JAM 2026 · Q32Consider the demand and supply functions: D(p)=400-8p and S(p)=2p, where p is the unit price and the choke price is Rupees 50. Identify which of the following…
  • CUET-PG 2025 · Q35Which of the following does not hold at the equilibrium price and quantity in a perfectly competitive market?
  • GATE 2025 · Q27In the context of a perfectly competitive market, identify the statement that is NOT CORRECT.
  • IIT JAM 2025 · Q5Which one of the following is the shut-down condition for a profit maximizing firm in a perfectly competitive market? (P = Price, AVC = Average Variable Cost, ATC =…

Question from the UoH 2016 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.