Question
Assume neither quantities nor number of firms need be integers. Market demand is MWTP = 64 - Q . Each firm in a constant-cost industry
Assume neither quantities nor number of firms need be integers. Market demand is MWTP = 64 - Q. Each firm in a constant-cost industry has total costs TC(q) = 64 + q2 and marginal costs are MC(q) = 2q. How many firms are in the market in the long-run equilibrium?
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
Microeconomics
Authors: Paul Krugman, Robin Wells
3rd edition
978-1429283427, 1429283424, 978-1464104213, 1464104212, 978-1429283434
