1. Let a perfectly competitive industry have 100 identical firms with a marginal cost curve given...

 

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1. Let a perfectly competitive industry have 100 identical firms with a marginal cost curve given by MC-Q/5. a. Construct the short run industry supply curve with 100 firms. b. Let the market demand curve be Q 14000-200 P. Find the short run equilibrium price, industry quantity, and firm quantity. c. This is a constant cost industry with a cost of $10. Will firms be making profits or losses in the short run equilibrium in b? d. Find the long run equilibrium price, industry quantity, firm quantity, number of firms, and profit for each firm. 1. Let a perfectly competitive industry have 100 identical firms with a marginal cost curve given by MC-Q/5. a. Construct the short run industry supply curve with 100 firms. b. Let the market demand curve be Q 14000-200 P. Find the short run equilibrium price, industry quantity, and firm quantity. c. This is a constant cost industry with a cost of $10. Will firms be making profits or losses in the short run equilibrium in b? d. Find the long run equilibrium price, industry quantity, firm quantity, number of firms, and profit for each firm.

Answer rating: 100% (QA)

a In the short run the industry supply curve will be the sum of the marginal cost curves of the 100 ... View the full answer