The wood-pallet market contains many identical firms, each with the short-run total cost function STC(Q) = 400

Question:

The wood-pallet market contains many identical firms, each with the short-run total cost function STC(Q) = 400 + 5Q + Q2, where Q is the firm's annual output (and all of the firm's $400 fixed cost is sunk). The corresponding marginal cost function is SMC(Q) = 5 + 2Q. The market demand curve for this industry is D(P) = 262.5 − P/2, where P is the market price. Each firm in the industry is currently earning zero economic profit. How many firms are in this industry, and what is the market equilibrium price?
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Social Media Marketing A Strategic Approach

ISBN: 978-0538480871

1st edition

Authors: Melissa Barker, Donald I. Barker, Nicholas F. Bormann, Krista E. Neher

Question Posted: