Y7

Consider a competitive industry with a market demand curve of P = 270 - Q, where P is market price and Q is the quantity demanded in the market. In the short run there are 4 firms in the industry, and each firm has a total cost function of TC = 144 + 6q + q², where q is output of the individual firm. In the long-run market equilibrium what is the number of firms in the industry?

Group of answer choices

12

16

20

None of the other answers are correct.

8