The widget industry is a constantcost industry, so that all firms are identical. The following chart shows
Question:
The industry is in longrun equilibrium and there are a hundred firms.
a. What are the fixed costs at each firm?
b. What is the price of awidget?
Transcribed Image Text:
IndustryWide 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
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