Consider a perfectly competitive market in the long run. We can mathematically state a typical firm's...

 

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Consider a perfectly competitive market in the long run. We can mathematically state a typical firm's total cost function as Total cost 768 +3 q², and its marginal cost as Marginal cost = 6 q. For the entire market, the demand can be explained by the following equation: Quantity demanded = 304 + Price. In the long-run equilibrium how many firms will operate on the market? Write the whole number. The table shows the marginal cost for a company's product at various production levels. Marginal cost ($/unit) Marginal cost ($/unit) 3.26 2.18 2.87 2.17 2.79 2.19 2.72 2.23 2.52 2.37 2.40 2.67 2.27 2.83 Units 0 $ 1000 2000 3000 4000 5000 6000 Units 7000 8000 9000 10,000 11,000 12,000 13,000 (a) Estimate the cost (not including fixed costs) to produce the first 12,000 units by considering batches of 2000 units. Use the initial marginal cost for each batch in your calculations. (b) Use batches of 1000 units and the ending marginal cost for each batch to estimate the cost of raising the production level from 4000 to 11,000 units. S Consider a perfectly competitive market in the long run. We can mathematically state a typical firm's total cost function as Total cost 768 +3 q², and its marginal cost as Marginal cost = 6 q. For the entire market, the demand can be explained by the following equation: Quantity demanded = 304 + Price. In the long-run equilibrium how many firms will operate on the market? Write the whole number. The table shows the marginal cost for a company's product at various production levels. Marginal cost ($/unit) Marginal cost ($/unit) 3.26 2.18 2.87 2.17 2.79 2.19 2.72 2.23 2.52 2.37 2.40 2.67 2.27 2.83 Units 0 $ 1000 2000 3000 4000 5000 6000 Units 7000 8000 9000 10,000 11,000 12,000 13,000 (a) Estimate the cost (not including fixed costs) to produce the first 12,000 units by considering batches of 2000 units. Use the initial marginal cost for each batch in your calculations. (b) Use batches of 1000 units and the ending marginal cost for each batch to estimate the cost of raising the production level from 4000 to 11,000 units. S

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a Estimating Cost with Batches of 2000 Units Heres how to estimate the cost to produce the first 120... View the full answer