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The market for drones is perfectly competitive. Assume for simplicity that fractions of everything, including rms, is possible. We have identical rms, each with a
The market for drones is perfectly competitive. Assume for simplicity that fractions of everything, including rms, is possible. We have identical rms, each with a Total Cost curve of TC=292+q"2 and Marginal Cost curve MC=2q. Market demand is Q=677-2P. If the Marginal Cost for every rm decreases by $10 at every quantity, what is the shortrun market price? (You can assume that MC>=AVC at every quantity for this question)
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