Question: Given this information and holding everything else constant, what is the equation for the long run market supply curve in this market? Assume that the

 Given this information and holding everything else constant, what is the

Given this information and holding everything else constant, what is the equation for the long run market supply curve in this market?

equation for the long run market supply curve in this market? Assume

Assume that the market for bagels is perfectly competitive. Each bagel firm has the same total cost function curves and marginal cost curve. These cost curves for each firm are given by the following equations where q is the number of bagels produced by a firm and P is the price per bagel: Total Cost Curve for a Representative Firm: TC = q*q*q*q + 3 Marginal Cost Curve for a Representative Firm: MC = 4(q*q*q) Suppose that the market demand curve for bagels is given by the following equation where Q is the market quantity of bagels and P is the price per bagel: Market Demand Curve: Q = 100 - 2P Given this information and holding everything else constant, what is the equation for the long run market supply curve in this market? O P = (1/98)Q O P = (1/23)Q O Q = (1/23) P O P =

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!