Suppose there are n identical firms in a market each


Suppose there are n identical firms in a market. Each firm’s cost function is given by C = 25 + q2, where q is the amount that an individual firm produces. This means that an individual firm’s marginal cost is given by MC = 2q. Also, the market demand is given by P = 100 – 2Q, where Q is the total amount of the good produced by all of the firms combined. Therefore, Q = n*q. a) How much output will each of them produce? b) What will be the market price? c) How many firms will there be in long run equilibrium?

Request for Solution File

Ask an Expert for Answer!!
Business Economics: Suppose there are n identical firms in a market each
Reference No:- TGS01186560

Expected delivery within 24 Hours