The long run total cost curve of a typical firm in the perfectly competitive widget industry is:
TC = 6,000q - 200q2 + 2q3
where q is the output in units of widgets produced by the firm.
The long run demand curve for widgets is estimated to be:
P = 25,000 - 2Q
where Q is the number of units of widgets demanded when the price of a unit of widgets is P.
What's the value of a typical firm's long run marginal cost at equilibrium? Show the calculation of its value.
How many firms are in the widget industry in the long run?
The value of the firm's marginal cost is ___________
There are __________ firms in the widget industry in the long run.