1.2 An industry with many stores offer laminating as a service to their customers. Suppose that each store that offers this service has a cost function C(q) = 50+0.5q+0.08q² and a marginal cost MC=0.5+0.16q. Suppose the going rate for laminating is R8.50 per sleeve which each store is compelled to charge. 1.2.1 Is the industry in long run equilibrium? Use calculations to either prove or disprove your findings. 1.2.2 Based on your answer in 1.2.1, identify two key features of long run equilibrium and determine the price associated with this period.

1.2 An industry with many stores offer laminating as a service to their customers. Suppose that each store that offers this service has a cost function C(q) = 50+0.5q+0.08q² and a marginal cost MC=0.5+0.16q. Suppose the going rate for laminating is R8.50 per sleeve which each store is compelled to charge. 1.2.1 Is the industry in long run equilibrium? Use calculations to either prove or disprove your findings. 1.2.2 Based on your answer in 1.2.1, identify two key features of long run equilibrium and determine the price associated with this period.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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