1. All (identical) firms in a competitive industry have the following long-run total cost curve: C(q)=q3...

 

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1. All (identical) firms in a competitive industry have the following long-run total cost curve: C(q)=q3 - 10q2+36q where q is the output of the firm. a. Compute the long run equilibrium price. What does the long-run supply curve look like? b. Suppose the market demand is given by Q=111-p. Determine the long-run equilibrium number of firms in the industry. 1. All (identical) firms in a competitive industry have the following long-run total cost curve: C(q)=q3 - 10q2+36q where q is the output of the firm. a. Compute the long run equilibrium price. What does the long-run supply curve look like? b. Suppose the market demand is given by Q=111-p. Determine the long-run equilibrium number of firms in the industry.

Answer rating: 100% (QA)

a The longrun equilibrium price is equal to the minimum of the average total cost curve The average ... View the full answer