Question
Suppose there is free entry in the market for microphones. The demand for microphones is given by: Q D = 2779 -7P . All firms
Suppose there is free entry in the market for microphones. The demand for microphones is given by: QD= 2779 -7P. All firms that produce microphones have identical long run average total cost functions given by: ATC = 3528/q + 7 + 8q.
Calculate the long run number of firms in this market.
Step by Step Solution
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Step: 1
To find the longrun number of firms in the market we need to set the longrun equilibrium condition w...
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Microeconomics
Authors: David Besanko, Ronald Braeutigam
5th edition
1118572270, 978-1118799062, 1118799062, 978-1118572276
