A representative firm in a perfectly competitive, constant cost industry has a cost function T C =
Fantastic news! We've Found the answer you've been seeking!
Question:
A representative firm in a perfectly competitive, constant cost industry has a cost function T C = 100+4Q 2+ 100Q.
(a) What are this firm fixed cost, variable cost and marginal cost?
(b) What is the long-run equilibrium price for this industry?
(c) If the market demand is Q = 1000 P , how many firms will operate in this long-run equilibrium?
(d) What is the most that this firm would be willing to pay for the exclusive right to use this new technology?
Related Book For
Posted Date: