Question 4 Suppose all firms in a given industry have the same supply curve given by S, (p) = p/6. (a) What's the indust

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Question 4 Suppose All Firms In A Given Industry Have The Same Supply Curve Given By S P P 6 A What S The Indust 1 (39.04 KiB) Viewed 8 times

Question 4 Suppose all firms in a given industry have the same supply curve given by S, (p) = p/6. (a) What's the industry supply curve if there are 3 firms operating in the industry? Plot and label the four industry supply curves generated by these firms if there are 1, 2, 3, or 4 firms operating in the industry. (b) If all of the firms had a cost structure such that if the price was below $5.5, they would be losing money, what would be the equilibrium price and output in the industry in the long run if the market demand was D(p) = 2.5? How many firms would exist in such a market? Why? (b) What if the identical conditions as above held except that the market demand was equal to D(p) = 9-p? Now, what would be the equilibrium price and output? How many firms would operate in such a market?