Question
Consider a perfectly competitive market in the short run. Assume that market demand is P=1000 - Q. Denoting firm level quantity by q, assume TC=30q-10q
- Consider a perfectly competitive market in the short run. Assume that market demand is P=1000 - Q. Denoting firm level quantity by q, assume TC=30q-10q2+q3so that MC=30-20q+3q2.
a) If there are 10 identical firm in the industry in the short run, what is the market equilibrium price and quantity?
if there are 10 identical firm then do I just divide by 10? P = 1000 - Q , P = Q so 1000 = 2Q -> Q = 500/10 or do I make Q = 10q?
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The World Economy Geography, Business, Development
Authors: Frederick P. Stutz, Barney Warf
6th edition
321722508, 321722507, 978-0321722508
