Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Economics Question 5. Suppose in a perfectly competitive industry, the typical rm has a long run total cost curve expressed by: TC = q3 18g2

Economics Question

image text in transcribedimage text in transcribed
5. Suppose in a perfectly competitive industry, the typical rm has a long run total cost curve expressed by: TC = q3 18g2 + 128C], where q is the rm's output. (15 marks) C P Firm Industry a) What output will a rm produce in the long run? b) What is the rm's long run per unit cost? 0) Is the rm operating at optimal size? What is it? Why? d) Assuming free entry to, and exit from the industry. If the industry market demand curve is given by: Px = 1397 -5Qx What will be the long run equilibrium, specifically? e) Industry price f) Industry output g) Number of firms

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Economics A Problem-Solving Approach

Authors: Luke M. Froeb, Brain T. Mccann

2nd Edition

B00BTM8FK0

More Books

Students also viewed these Economics questions

Question

What is electric dipole explain with example

Answered: 1 week ago