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 value of F will ensure that the economic profits of each firm are 0 when P=31
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Core Macroeconomics
Authors: Eric Chiang
3rd edition
978-1429278478, 1429278471, 978-1429278492, 1429278498, 1464191433, 978-1464191435
