Question
A firm in a competitive market produces 120000 units when the market price was $80. Today at $120/unit 200000 units are produced and supplied daily.
A firm in a competitive market produces 120000 units when the market price was $80. Today at $120/unit 200000 units are produced and supplied daily. Consumers on the other hand. Buy 120000 when the market price is $100/unit but would only buy 110000 units when the price is $140/ unit
Can you do the cost function and answer for the following
1.Equilibrium market price and quantity
2.discuss the effect if the government adds $10 to the equilibrium market price
3.The quantity demanded and supplied
4.Profits/costs for existing firms
5.Market Outcomes, in the long run.
Please supply the cost function and graphs.
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