Question
Each firm in a competitive market has a cost function of C=16+q 2 . The market demand function is Q=24-p. a . Draw two diagrams,
Each firm in a competitive market has a cost function of C=16+q2. The market demand function is Q=24-p.
a. Draw two diagrams, one for the market and one for a representative firm.
b. Determine the long run equilibrium price, quantity per firm and market quantity.
c.Determine the long run number of firms.
d. If market price is p=6, what will be the output of each firm? Why?
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Technology Ventures From Idea To Enterprise From Idea To Enterprise
Authors: Richard C Dorf, Byers
3rd Global Edition
9780071289214
