Please refer to the background information below to answer the following four questions. A perfectly competitive market

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Please Refer To The Background Information Below To Answer The Following Four Questions A Perfectly Competitive Market 1 (47.23 KiB) Viewed 37 times

Please refer to the background information below to answer the following four questions. A perfectly competitive market is initially in a long run equilibrium, with n identical firms (n can take non-integer values). The demand curve and the short-run supply curve are given as follows. Supply: Q=2P - 1 thousand units Demand: Q - 1800 - 4P thousand units 53. The equilibrium price is [ Answer53A 300.17 ] dollars per unit and the equilibrium quantity is Answer53B = 599.33 ) thousand units. 54. Suppose there is an increase in demand such that each consumer's willingness to pay increases by 100 dollars, and suppose this is a constant cost industry. Then, the quantity traded in the market is Answer54 = 999.33 ) thousand units when the market reaches a long run equilibrium again. 55. Continue with the previous question. Suppose the new entrants and the incumbent firms are all identical. After the increase in demand, 10 new firms eventually enter the market so that a new long run equilibrium is reached. The average cost curve of an individual firm is minimized at g= Answer55 = 40.00 ) thousand units. 56. The average cost at this quantity is Answer56 = 300.17 ] dollars per unit.