Suppose that the industry demand curve Qp = 300-10P. The competitive firm's short-run total cost curve...

 

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Suppose that the industry demand curve Qp = 300-10P. The competitive firm's short-run total cost curve is TC = 36 + 2q+q². In the short run, there are 50 identical firms in the industry. a. Find the market price, firm's quantity, and market quantity in the short run. b. Does the firm make a positive, negative, or zero profit? Find profit for the firm. c. Find the shutdown price in the short run d. Is this a long-run equilibrium? Why or why not. If not, find the long-run number of firms. Suppose that the industry demand curve Qp = 300-10P. The competitive firm's short-run total cost curve is TC = 36 + 2q+q². In the short run, there are 50 identical firms in the industry. a. Find the market price, firm's quantity, and market quantity in the short run. b. Does the firm make a positive, negative, or zero profit? Find profit for the firm. c. Find the shutdown price in the short run d. Is this a long-run equilibrium? Why or why not. If not, find the long-run number of firms.

Answer rating: 100% (QA)

To find the market price firms quantity and market quantity in the short run we need to equate the industry demand curve with the industry supply curve a Market price and quantity The industry supply ... View the full answer