Now assume there are 500 identical firms in this industry, that they have identical cost data as the firm above, and that the industry demand schedule is as follows:
|
Price
|
Quantity Demanded
|
|
$72
|
2500
|
|
52
|
3500
|
|
45
|
4000
|
|
28
|
5200
|
|
22
|
5900
|
|
15
|
6700
|
(a) What will the equilibrium price be?
(b) What will the equilibrium output for each firm be?
(c) What will profit or loss be per unit?
(d) What will profit or loss be per firm?