An industry currently has 100 firms, all of which have fixed costs of $16 and avg. variable cost as follows:
Q Avg. Variable Cost ($)
1 1
2 2
3 3
4 4
5 5
6 6
a. Compute marginal cost and avg. total cost.
b. the price is $10. what is the total quantity supplied in the market?
c. as this market makes the transition to its long-run equilibrium, will the price rise or fall? will the quantity demanded rise or fall? will the quantity supplied by each firm rise or fall?