8. A competitive industry currently has 100 identical firms. Each firm has costs TC(q) = 18 +2q + ½q² and MC =q +2, minimum AC = 8, and is reached when the firm produces q = 6. Please answer the following a. Find the individual firm’s supply curve. b. Find the industry short-run supply curve. c. Currently, the industry demand is Q = 1,300 - 50P. Find the short-run equilibrium price P, market quantity Q, and individual firm quantity q. d. What is the profit of an individual firm? e. Suppose there are hundreds of similar firms outside of the market and ready to enter. Find the long-run equilibrium price P, market quantity Q, individual firm quantity q, and number of firms n.
8. A competitive industry currently has 100 identical firms. Each firm has costs TC(q) = 18 +2q + ½q² and MC =q +2, minimum AC = 8, and is reached when the firm produces q = 6. Please answer the following a. Find the individual firm’s supply curve. b. Find the industry short-run supply curve. c. Currently, the industry demand is Q = 1,300 - 50P. Find the short-run equilibrium price P, market quantity Q, and individual firm quantity q. d. What is the profit of an individual firm? e. Suppose there are hundreds of similar firms outside of the market and ready to enter. Find the long-run equilibrium price P, market quantity Q, individual firm quantity q, and number of firms n.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Please answer all parts please.
![8. A competitive industry currently has 100 identical firms. Each firm has costs
TC(q) = 18 + 2q + ½q? and MC =q +2, minimum AC = 8, and is reached when the firm produces
q = 6. Please answer the following
a. Find the individual firm's supply curve.
b. Find the industry short-run supply curve .
c. Currently, the industry demand is Q = 1,300 - 50P. Find the short-run equilibrium price
P, market quantity Q, and individual firm quantity q.
d. What is the profit of an individual firm?
e. Suppose there are hundreds of similar firms outside of the market and ready to enter. Find
the long-run equilibrium price P, market quantity Q, individual firm quantity q, and number
of firms n.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F55e523e7-e2e6-402b-ad67-45f8eb2bc62b%2Fd094817d-855a-4e63-8616-efe9965b5233%2F1nyswl_processed.png&w=3840&q=75)
Transcribed Image Text:8. A competitive industry currently has 100 identical firms. Each firm has costs
TC(q) = 18 + 2q + ½q? and MC =q +2, minimum AC = 8, and is reached when the firm produces
q = 6. Please answer the following
a. Find the individual firm's supply curve.
b. Find the industry short-run supply curve .
c. Currently, the industry demand is Q = 1,300 - 50P. Find the short-run equilibrium price
P, market quantity Q, and individual firm quantity q.
d. What is the profit of an individual firm?
e. Suppose there are hundreds of similar firms outside of the market and ready to enter. Find
the long-run equilibrium price P, market quantity Q, individual firm quantity q, and number
of firms n.
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