Question
The Green Company produces chemicals in a perfectly competitive market. The current market price is $40; the firm's total cost is C = 100 +
The Green Company produces chemicals in a perfectly competitive market. The current market price is $40; the firm's total cost is C = 100 + 4Q + Q2
a.Complying with more stringent environmental regulations increases the firm's fixed cost from 100 to 144. How would the increase in fixed cost affect the market's long-run equilibrium price? The number of firms?
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Microeconomics
Authors: Paul Krugman, Robin Wells
3rd edition
978-1429283427, 1429283424, 978-1464104213, 1464104212, 978-1429283434
