A perfectly competitive industry is characterized by the
A perfectly competitive industry is characterized by the cost function for individual firms: TC(q) = 0.01q2 + 100
and by demand function: D(p) = 10, 000 - 100p
Compute the long-run equilibrium price, quantity, and number of firms in the market.
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Characterize the long run equilibrium of a perfectly competitive industry in which average costs are U-shaped as output increases, under both restricted and free entry.
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Consider an industry with a small number of firms with market power. Suppose they sell identical products and have identical cost of production. If each firm posts a price without knowing the prices
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