Question
(6 points) In a perfectly competitive market, each firm has a total cost: TC= 50+40Q+Q 2 if Q>0 and TC=0 if Q=0 a) (3 points)
(6 points) In a perfectly competitive market, each firm has a total cost: TC= 50+40Q+Q2 if Q>0 and TC=0 if Q=0
a) (3 points) Calculate the price below which the firm will not produce any output in the short run.
b) (3 points) Assume that there are 12 identical firms in this industry. Currently, the market demand for newsprint is D(P) = 360 2P, where D(P) is the quantity consumed in the market when the price is P. What is the short-run equilibrium price?
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Business Driven Technology
Authors: Paige Baltzan
5th edition
978-007337684, 9780077419318, 73376841, 77419316, 978-0073376844
