11 The average cost (SR and LR) of Q = 50,000 is $10. / 5o,000,10) Ac SRE LR (s0,000, 1a) %3D With the current plant size, the minimum of short run average cost (SRAC) is $8, at uie output level of Q = 62,000. (62.000, 8) SRAC a. Sketch the firm's LRAC, SRAC, SRMC, and LRMC curves. %3D b. Assume that the market price in the short run is P = $11. Given the way you drew the diagram, identify the short run equilibrium quantity (Qs1) in the graph. C. Next, assume that the price of $11 persists long enough for the firm to make any profitable long run adjustment to plant size. Identify equilibrium quantity (Qs2). d. Finally, assume that the market attains long run equilibrium. Given the way you drew the graph, identify this firm's equilibrium quantity (Q*) in the diagram.
11 The average cost (SR and LR) of Q = 50,000 is $10. / 5o,000,10) Ac SRE LR (s0,000, 1a) %3D With the current plant size, the minimum of short run average cost (SRAC) is $8, at uie output level of Q = 62,000. (62.000, 8) SRAC a. Sketch the firm's LRAC, SRAC, SRMC, and LRMC curves. %3D b. Assume that the market price in the short run is P = $11. Given the way you drew the diagram, identify the short run equilibrium quantity (Qs1) in the graph. C. Next, assume that the price of $11 persists long enough for the firm to make any profitable long run adjustment to plant size. Identify equilibrium quantity (Qs2). d. Finally, assume that the market attains long run equilibrium. Given the way you drew the graph, identify this firm's equilibrium quantity (Q*) in the diagram.
Chapter6: Proudction Costs
Section: Chapter Questions
Problem 10SQP
Related questions
Question
Could I have help figuring out part b-d
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 4 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Microeconomics
Economics
ISBN:
9781305156050
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Essentials of Economics (MindTap Course List)
Economics
ISBN:
9781337091992
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning