Question
The inexpensive fashion wristwatch industry is perfectly competitive. Each firm producing the watches has cost curve given by C = 100 + 20q + q2.
The inexpensive fashion wristwatch industry is perfectly competitive. Each firm producing the watches has cost curve given by C = 100 + 20q + q2. (You may assume this is both the short-run and the long-run cost curve.) Currently, there are 50 firms producing the watches, and the market demand is given by Q = 2000 - 25p.
- Calculate the short-run market equilibrium price:
- Calculate the long-run market equilibrium price:
- Calculate the number of firms in long-run equilibrium:
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Financial Accounting
Authors: Libby, Short
6th Edition
978-0071284714, 9780077300333, 71284710, 77300335, 978-0073526881
