Order the answer to: Suppose there are n identical…
Question | Suppose there are n identical firms in a market. Each firm has fixed cost equal to 392, and variable cost given by VC = 2q2, where q is the amount that an individual firm produces. This means that an individual firm’s marginal cost is given by MC = 4q. Also, the market demand is given by. P = 1148 – 3Q, 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? |
---|---|
Subject | business-economics |
Have a writer answer this question by clicking below. If you have any questions you can contact us via live chat.