Answer Happy

A number of stores offer film developing as a service to their customers. Suppose that each store offering this service has a cost function (C) C(q) = 50+ 0.20q+0.0800q² and a marginal cost (MC) of MC(q) = 0.20 +0.160q. If the going rate for developing a roll of film is $8.00, is the industry in long-run equilibrium? No Find the price associated with long-run equilibrium. The market will be in long-run equilibrium when the price is $ 4.20. (Enter your response rounded to two decimal places.) Suppose now a new technology is developed that will reduce the cost of film developing by 25 percent. Assuming that the industry is in long-run equilibrium, how much would any one store be willing to pay to purchase this new technology? Assuming that the market price remains at the above long-run equilibrium level, a firm would be willing to pay $ for the new technology. (Enter your response rounded to two decimal places.)