20. Suppose that the market for ice cream is perfectly competitive. All ice cream producers are identical and have long-run total cost functions given by TC(Q) = 40³-8Q² +100Q. The market demand curve is QD = 5,000-P. What is the long-run equilibrium quantity and price?

20. Suppose that the market for ice cream is perfectly competitive. All ice cream producers are identical and have long-run total cost functions given by TC(Q) = 40³-8Q² +100Q. The market demand curve is QD = 5,000-P. What is the long-run equilibrium quantity and price?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

20. Suppose that the market for ice cream is perfectly competitive. All ice cream
producers are identical and have long-run total cost functions given by TC (Q) =
40³-8Q² +1000. The market demand curve is QP = 5,000 - P. What is the
long-run equilibrium quantity and price?

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