Wat is the long run equilibrium individual firms profit p


Consider a perfectly competitive industry. Each (identical) firm has the following total cost function C(q) = 16 + 4q2. The market demand facing the industry is Qd(p) = 500 - 10p, where p is the market price.

a) What is the long run equilibrium individual firm's profit π* ? Show your work

b) What is the long run equilibrium market price p*? Show your work

c) What is the long run equilibrium individual firm's quantity q*? Show your work

d) What is the number of firms in the industry N*? Show your work

Solution Preview :

Prepared by a verified Expert
Business Economics: Wat is the long run equilibrium individual firms profit p
Reference No:- TGS02252550

Now Priced at $20 (50% Discount)

Recommended (98%)

Rated (4.3/5)