Question
A firm operating in a perfectly competitive market has the following total cost function: TC=Q2+40Q+100 There are 20 identical firms in the short-run in the
A firm operating in a perfectly competitive market has the following total cost function: TC=Q2+40Q+100 There are 20 identical firms in the short-run in the market. In addition, the demand function is given by: Q=800-5P
a) Find theSupply Functionfor the Firm in theshort-run
b) What is the equilibriumpriceandquantityin the market in theshort-run?
c) How much does each of the 20 firms produce in theshort-run?
d) How much profits does each firm make in theshort-run? Will there be entry or exit in thelong-run?
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Price theory and applications
Authors: Steven E landsburg
8th edition
538746459, 1133008321, 780538746458, 9781133008323, 978-0538746458
