2. A firm sells its output in a PCM. The firm's short-run cost function given SC = T q' -0.2g* + 4q + 10. a. Derive the short-run supply function of a typical firm in this industry. is by b. Assuming that there are 100 identical firms in this industry, derive the short- run market supply function. c. If currently the market demand for these firm's product is Q 200p", determine the short- equilibrium market price. 8,000 run d. At this equilibrium market price, calculate the level of output and profit that each firm produces in the short- run. With this information, comment on the potential entry/exit of firms in this industry in the long-run.
2. A firm sells its output in a PCM. The firm's short-run cost function given SC = T q' -0.2g* + 4q + 10. a. Derive the short-run supply function of a typical firm in this industry. is by b. Assuming that there are 100 identical firms in this industry, derive the short- run market supply function. c. If currently the market demand for these firm's product is Q 200p", determine the short- equilibrium market price. 8,000 run d. At this equilibrium market price, calculate the level of output and profit that each firm produces in the short- run. With this information, comment on the potential entry/exit of firms in this industry in the long-run.
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter13: Firms In Competitive Markets
Section: Chapter Questions
Problem 11PA: Suppose that each firm in a competitive industry has the following costs: Total cost: TC = 50 + q2...
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