Question: please answer those questions Question 7 (15 points) B2. The long-run cost function of a firm in a perfectly competitive market is given by C(q)=200q-10q2+.5q3,

please answer those questions

please answer those questions Question 7 (15 points) B2. The long-run cost

Question 7 (15 points) B2. The long-run cost function of a firm in a perfectly competitive market is given by C(q)=200q-10q2+.5q3, where q is firm output. Market demand is given by QD=20,000-10P, where Q is market output and P is price. (a) Solve for the long-run equilibrium values of price, output per firm, the number of firms and market output. (b) Suppose that market demand increases by 4,500 units at each price. Solve for the new equilibrium values of price, output, output per firm and number of firms in the long-run equilibrium. (c) Return to the original demand function used in part a). Now suppose that a change in tastes means that consumers are willing to pay $100 more for each unit of the good. Solve for the new equilibrium values of price, output, output per firm and the number of firms in long run equilibrium. A/ Add a File Record Audio Record Video

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