Question
A competitive firm has the long-run total cost function TC(Q) = 4Q 2 +100Q+100 (a) Provide long-run marginal cost function LMC(Q) and long-run average cost
A competitive firm has the long-run total cost function TC(Q) = 4Q 2 +100Q+100
(a) Provide long-run marginal cost function LMC(Q) and long-run average cost LAC(Q).
(b) If the market has N identical firm in the industry and the market demand is Q = 1000P. In the equilibrium, what is N?
(c) Suppose the government grants a lump-sum subsidy to each firm to reduce the manufacture cost. If this lump-sum subsidy equals $36, what should the market price be in this case?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Research In Forest Economics And Forest Policy
Authors: Marion Clawson
1st Edition
1317362624, 9781317362623
