Question
There are 8 identical firms in a perfectly competitive market. They all face short-run total cost: STC (Q): {F+50+3Q+2Q^2 when Q>0, F when Q=0 where
There are 8 identical firms in a perfectly competitive market. They all face short-run total cost: STC (Q): {F+50+3Q+2Q^2 when Q>0, F when Q=0
where F is the sunk cost. The market demand is D(P)= 171-P. Solve A.
A.) What would be the shutdown price for each firm and the equation for the supply firm for any of these firms.
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Microeconomics An Intuitive Approach with Calculus
Authors: Thomas Nechyba
1st edition
538453257, 978-0538453257
