2 Consider A Perfectly Competitive Industry Where Each Firm Is Identical And The Total Cost Function For Each Firm In B 1 (68.9 KiB) Viewed 50 times
2. Consider a Perfectly Competitive Industry where each firm is identical and the total cost function for each firm in both the short-run and the long-run is given by: TC =q³-16q² + 114q a) What will the long-run equilibrium price be in this market? How much will each individual firm produce at this price? [7 Marks including concluding statement] b) Draw two graphs, the first which depicts an individual firm's production decision (marginal and average cost curves) and a second which depicts Market Demand (given by Q = 3260 - 10p) and Industry Supply. [7 Marks, axis labels, curves and labeling the points from parts a) and c)]
Given that the Market Demand Curve is: Q = 3260-10p, What is the equilibrium quantity in the Market? - How many firms are in the industry in the long-run equilibrium? [3 Marks including concluding statement]
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