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3. Partial equilibrium You suffered through 1 and 2 (and later, 4), so I'm just going to give you the market demand curve and the cost function for the representative seller, respectively. 16 Р q² C,(q) = & -+ + A₂ Where i denotes an individual firm. For now, we'll assume A, is a constant; later, it'll depend on the firm. There are N firms. a. Construct market supply. b. What is the market equilibrium price and quantity for some N? e. Find the long-run N given a constant A,.

3. Partial equilibrium You suffered through 1 and 2 (and later, 4), so I'm just going to give you the market demand curve and the cost function for the representative seller, respectively. 16 Р q² C,(q) = & -+ + A₂ Where i denotes an individual firm. For now, we'll assume A, is a constant; later, it'll depend on the firm. There are N firms. a. Construct market supply. b. What is the market equilibrium price and quantity for some N? e. Find the long-run N given a constant A,.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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3. Partial equilibrium You suffered through 1 and 2 (and later, 4), so I'm just going to give you the market demand curve and the cost function for the representative seller, respectively. QD 16 Р q² C₂(q) + A₂ Where i denotes an individual firm. For now, we'll assume A, is a constant; later, it'll depend on the firm. There are N firms. a. Construct market supply. b. What is the market equilibrium price and quantity for some N? c. Find the long-run N given a constant A,. Now suppose A, differs for each firm. For simplicity, we number the firms 1 to M. Firm 1 has fixed cost A₁ = 0.005, firm 2 has fixed cost A₂ = 0.01, firm n has a fixed cost A₁ = 0.005n, and so on. d. For some N, what is the break-even A₂? c. How many firms will there be in equilibrium?
Transcribed Image Text:3. Partial equilibrium You suffered through 1 and 2 (and later, 4), so I'm just going to give you the market demand curve and the cost function for the representative seller, respectively. QD 16 Р q² C₂(q) + A₂ Where i denotes an individual firm. For now, we'll assume A, is a constant; later, it'll depend on the firm. There are N firms. a. Construct market supply. b. What is the market equilibrium price and quantity for some N? c. Find the long-run N given a constant A,. Now suppose A, differs for each firm. For simplicity, we number the firms 1 to M. Firm 1 has fixed cost A₁ = 0.005, firm 2 has fixed cost A₂ = 0.01, firm n has a fixed cost A₁ = 0.005n, and so on. d. For some N, what is the break-even A₂? c. How many firms will there be in equilibrium?
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3. Partial equilibrium You suffered through 1 and 2 (and later, 4), so I'm just going to give you the market demand curve and the cost function for the representative seller, respectively. QD 16 Р q² C₂(q) + A₂ Where i denotes an individual firm. For now, we'll assume A, is a constant; later, it'll depend on the firm. There are N firms. a. Construct market supply. b. What is the market equilibrium price and quantity for some N? c. Find the long-run N given a constant A,. Now suppose A, differs for each firm. For simplicity, we number the firms 1 to M. Firm 1 has fixed cost A₁ =0.005, firm 2 has fixed cost A₂ = 0.01, firm n has a fixed cost A, = 0.005n, and so on. d. For some N, what is the break-even A₂? c. How many firms will there be in equilibrium?
Transcribed Image Text:3. Partial equilibrium You suffered through 1 and 2 (and later, 4), so I'm just going to give you the market demand curve and the cost function for the representative seller, respectively. QD 16 Р q² C₂(q) + A₂ Where i denotes an individual firm. For now, we'll assume A, is a constant; later, it'll depend on the firm. There are N firms. a. Construct market supply. b. What is the market equilibrium price and quantity for some N? c. Find the long-run N given a constant A,. Now suppose A, differs for each firm. For simplicity, we number the firms 1 to M. Firm 1 has fixed cost A₁ =0.005, firm 2 has fixed cost A₂ = 0.01, firm n has a fixed cost A, = 0.005n, and so on. d. For some N, what is the break-even A₂? c. How many firms will there be in equilibrium?
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