Question: I think it is the fifth question in the sample final https://www.coursehero.com/file/13874036/MGEB02-SampleTest2-2/ Question-5 [15 Points]: The market demand is given as: Qd = 1000 -
I think it is the fifth question in the sample final https://www.coursehero.com/file/13874036/MGEB02-SampleTest2-2/

Question-5 [15 Points]: The market demand is given as: Qd = 1000 - 40P The producers are characterized by q = 205 + Ko.5 . The cost of labor is $4 per hour and the cost of capital is $1 per unit. In the short run the capital is fixed at 16 units. a) (5 Points) Find the short run market supply curve. (Make sure to identify the short run shut-down price). b) (5 Points) Find the long-run supply curve? Identify the equilibrium quantity and price? How many firms will be operating in the long run? Use a graph to demonstrate your solution. c) (5 Points) Suppose in addition to the firms identified above (parts a & b) there is a single firm with a production function characterized by: q=8LK> . Find the long-run supply curve for this firm. Explain briefly how the industry adjusts to the emergence of this firm in the long run
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