1.What is the firms shutdown price 2. If there are 1000 identical firms in the market, what is the market price and quantity 3. What is the long run equilibrium price, quantity and number of firms
1.What is the firms shutdown price 2. If there are 1000 identical firms in the market, what is the market price and quantity 3. What is the long run equilibrium price, quantity and number of firms
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter5: Investment Decisions: Look Ahead And Reason Back
Section: Chapter Questions
Problem 5.1IP
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Question
1.What is the firms shutdown price
2. If there are 1000 identical firms in the market, what is the market price and quantity
3. What is the long run
![The table provides data on a market demand schedule (Price and Quantity) and a firm's average and
marginal cost schedules.
Price P (£)
24
20
16
12
8
Quantity Firm's
output
3000
4000
5000
6000
7000
1
2
5
35
AVC (E)
11.25
11.13
12
11.63
12.25
ATC (£)
13.5
12.25
12.25
12
12.7
MC (£)
11
11.13
12
12
16
#
[IT]](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe6120856-a5f6-4caa-ba37-e78e44f3615e%2F26a0d83f-6428-42b8-805a-59f8624a5749%2Fp7rslha_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The table provides data on a market demand schedule (Price and Quantity) and a firm's average and
marginal cost schedules.
Price P (£)
24
20
16
12
8
Quantity Firm's
output
3000
4000
5000
6000
7000
1
2
5
35
AVC (E)
11.25
11.13
12
11.63
12.25
ATC (£)
13.5
12.25
12.25
12
12.7
MC (£)
11
11.13
12
12
16
#
[IT]
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