The widget industry is a constant-cost industry, so that all firms are identical. The following chart shows

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The widget industry is a constant-cost industry, so that all firms are identical. The following chart shows the industry-wide demand curve and the marginal cost curve of a typical firm:

The industry is in long-run equilibrium and there are a hundred firms.
a. What are the fixed costs at each firm?
b. What is the price of awidget?

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Price theory and applications

ISBN: 978-0538746458

8th edition

Authors: Steven E landsburg

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Question Posted: Jan 24, 2013 08:17 AM

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The widget industry is a constant-cost industry, so that all firms are identical. The following chart shows

Question:

Industry-Wide Demand Price Firm's Marginal Cost Curve Quantity Marginal Cost $2 Quantity 500 400 300 200 100 $2 4 12 12 25 10 15 15

Step by Step Answer:

ab The firms shortrun supply curve is equal to its marginal cost curve The indu...View the full answer

Price theory and applications

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