Question: In Problem, suppose that the city imposes a license fee of $11 per firm. a. In the short run, what is the new price of

In Problem, suppose that the city imposes a license fee of $11 per firm.

Industry-Wide Demand Firm's Marginal Cost Curve Price Quantity Quantity Marginal Cost $2 00 $2 400 2 3 300 3 200 4 100 5

a. In the short run, what is the new price of a widget?

b. In the long run, what is the new price of a widget?

c. In the long run, how many firms leave the industry?


Industry-Wide Demand Firm's Marginal Cost Curve Price Quantity Quantity Marginal Cost $2 00 $2 400 2 3 300 3 200 4 100 50 12 25 12 15 10 8. 15

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