Question
Given a long-run average total cost function where (let's say) function is U-shaped and minimized at q=4 units of output, long-run average total cost is
Given a long-run average total cost function where (let's say) function is U-shaped and minimized at q=4 units of output, long-run average total cost is $100 at q=4. and the market demand for unit is Qd = 1000 - 2P (perfectly competitive industry)
How would I find:
long-run equilibrium output of each firm
long-run equilibrium price
long-run equilibrium total industry output
long-run equilibrium number of firms in the market
long-run equilibrium profit of each individual firm
long-run equilibrium value of consumers' surplus
*why is the function 'U' shaped?*
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