1. Suppose a constant cost, perfectly competitive industry is composed of identical fimswhere the level of K that allows them the lowest possible AC generates the following costfunction: SC(q) = 2q² + 6q + 18 where q is the firm's output and FC = 18.%3Da) What are the SAC, and SMC equations?b) Tum the SMC function into a firmshort-run supply equationc) Find the profit and the producer suplus.d) Let the market demand function to be QD = 660 – 20P, and how many firms do youexpect to now see in the market in the long run?

Many consumers and sellers, undifferentiated items, no transaction costs, no barriers to entry and…

1. Suppose a constant cost, perfectly competitive industry is composed of identical fims where the level of K that allows them the lowest possible AC generates the following cost function SC(q) = 2q° + 6q + 18 where qis the firm's output and FC = 18. a) What are the SAC, and SMC equations? b) Tum the SMC function into a fim short-run supply equation c) Find the profit and the producer suplus. d) Let the market demand function to be QD = 660 – 20P, and how many fims do you %3D expect to now see in the market in the long run?

1. Suppose a constant cost, perfectly competitive industry is composed of identical fims where the level of K that allows them the lowest possible AC generates the following cost function SC(q) = 2q° + 6q + 18 where qis the firm's output and FC = 18. a) What are the SAC, and SMC equations? b) Tum the SMC function into a fim short-run supply equation c) Find the profit and the producer suplus. d) Let the market demand function to be QD = 660 – 20P, and how many fims do you %3D expect to now see in the market in the long run?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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11.6 #2. PLEASE ANSWER LETTERS A, B, C, PLEASE SHOW ALL WORK. DO NOT SKIP ANY LETTERS, EVERYTHING MUST BE ANSWERED. THANK YOU