Question: The same demand conditions as those in problem 5 prevail, and there are still 1,000 firms in the industry, but fixed costs increase by $980.
The same demand conditions as those in problem 5 prevail, and there are still 1,000 firms in the industry, but fixed costs increase by $980.
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a. What is market price?
b. What is the industry's output?
c. What is the output produced by each firm?
d. What is the economic profit made by each firm?
e. Do firms enter or exit the industry?
Also: What is the long-run equilibrium price?
f. What is the number of firms in the long run?
demanded, Qd Supply price SR Industry Supported Slope of firms Price 3.65 5.20 demand intercept Output, Qs -0.0310 $ 19.15 -0.0320 $ 19.60 -0.0320 $ 19.60 -0.0320 $ 19.60 -0.0320 $ 19.60 -0.0320 $ 19.60 -0.0320 $ 19.60 450,000 $ 400,000 S 7.00 7.65 300,000 350,000 400,000 450,000 450,000 6.80 8.40 350,000 $ 300,000 S 8.40 10.00 12.40 10.00 11.60 12.40 13.20 250,000 S 12.40 500 225,000 S 200.000 $ 2$ 12.70 500.000 SSS SSSSAS
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Industry Typical firm Supply price OutputQs Outputq TR 840 TFC TVC TC Profit MC AVC ATC 0 1980 1980 ... View full answer
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