Consider a perfectly competitive market in which all firms have the same technology characterized by the cost
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Consider a perfectly competitive market in which all firms have the same technology characterized by the cost function C q q in which the first part is the Fixed Cost of maintaining the plant, and the second part is the Variable Cost as a function of quantity produced q Note that the Marginal Cost for this technology is MC q q The inverse market demand is p Qd where p is the market price, and Qd is quantity demanded. There is free entry and exit in this market.
why is so hard tu sustain such a cartel or monopoly in this industry ?
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