Question
Bizal Business, Lit Lighting, and 998 other companies make energy-efficient LED lights in the world market. The market demand for LED lights is:P(Q)=2008-Q when Q
Bizal Business, Lit Lighting, and 998 other companies make energy-efficient LED lights in the world market. The market demand for LED lights is:P(Q)=2008-Q when Q is the quantity produced Bizal Business + Lit Lighting + all other companies. All firms have no fixed costs and a constant marginal cost of $8.00 per LED light. Suppose Bizal Business, Lit Lighting, and 998 other LED companies engage in perfect competition.
A. What is the price of one LED light in this perfectly competitive market? Why?
B. What are Bizal Business's profits in this pricing game?
C. What are Lit Lighting profits in this pricing game?
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Macroeconomics Principles, Problems, & Policies
Authors: Campbell McConnell, Stanley Brue, Sean Flynn
20th Edition
0077660773, 9780077660772
