Question
Assume that in 2019 the market for warehouse space was in long-run equilibrium. Using a side-by-side diagram, with market on the left and individual (representative)
Assume that in 2019 the market for warehouse space was in long-run equilibrium. Using a side-by-side diagram, with market on the left and individual (representative) firm on the right, illustrate long-run equilibrium in this market, assuming that it is perfectly competitive.
- Label the initial market supply (S0) and market demand (D0) curves and individual firm's ATC0, AVC0, and MC0 curves. (There is no need to include the AFC curve in your drawing.)
- Label the equilibrium price P0, market quantity Q0, quantity produced by the individual (representative) firm q0, and representative firm's profit 0. If any of these cannot be illustrated in the diagram, clearly state their values.
- Please make sure that you appropriately label all axes in your drawing.
Upload a single MS Word, Adobe PDF, or graphics file (JPEG, TIFF, PNG, BMP only) that does not exceed 5MBs with a graph as an answer to this question.
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Accounting
Authors: Charles T. Horngren, Walter T. Harrison Jr., M. Suzanne Oliv
9th Edition
130898414, 9780132997379, 978-0130898418, 132997371, 978-0132569309
