3suppose in the short run a perfectly competitive firm


3. (20 total points) Suppose in the short run a perfectly competitive firm has variable cost = 4q2, and MC = 8q where q is the quantity of output produced. Also, the firm has fixed cost F = 144.

Suppose the market demand is given by P = 336 - 3Q where Q is the market quantity produced by all the firms. Assume there are n identical firms in the market. So Q = q*n. Find n (the number of firms).

n = 16

Can anybody explain why n=16?

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Microeconomics: 3suppose in the short run a perfectly competitive firm
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