Consider a competitive market for gasoline cars. The market is in a long-run equilibrium. In this equilibrium, each firm

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Consider A Competitive Market For Gasoline Cars The Market Is In A Long Run Equilibrium In This Equilibrium Each Firm 1 (39.02 KiB) Viewed 78 times

Consider a competitive market for gasoline cars. The market is in a long-run equilibrium. In this equilibrium, each firm's short-run and long-run total cost functions are given by SRTC(q) = 9' - 6q12+4 LRTC(O)-129 The market demand for gasoline cars is given by Qo(P) = 540 - 2P All the quantities are in thousand units, and all the prices are in thousand dollars. (@) What is the equilibrium price in the long-run equilibrium? The equilibrium price in the long-run equilibrium is thousand dollars. (Round your answers to the nearest integer) (b) Knowing that cost curves are defined by the above functions, derive the number of cars each firm produces in the long run equilibrium Each firm produces thousand cars in the long run equilibrium. (Round your answers to the nearest integer) (c) What is the equilibrium market quantity in the long-run equilibrium? How many firms are in the market? thousand cars are produced in the long-run equilibrium (Round your answers to the nearest integer) There are firms in the market in the long-run equilibrium (Round your answers to the nearest Integer) (0) (Bonus) Derive each firm's short-cun supply curvo Derive the short-run market supply curve. For simplicity, report only the portion associated with positive quantities A signie firm's short-run supply curve is (expressing as a function of P) The short-run market supply curve is (oxprossing O as a function of A total of for each curve