9. Problems and Applications Q10 An industry currently has 100 firms, each of which has fixed costs of $15 and average variable costs as follows: Complete the following table by deriving the total cost, marginal cost, and average total cost for each quantity from 1 to 6. Average Variable Cost Quantity (Dollars) Average Total Cost (Dollars) 1 2 10 12 The equilibrium price is Jurrently $20. Each firm produces Total Cost Marginal Cost (Dollars) (Dollars) 15 units, so the total quantity supplied in the market is units. In the long run, firms can enter and exit the market, and all entrants have the same costs as in the previous table. As this market makes the transition to its long-run equilibrium, the price will firm will quantity demanded will and the quantity supplied by each.

9. Problems and Applications Q10 An industry currently has 100 firms, each of which has fixed costs of $15 and average variable costs as follows: Complete the following table by deriving the total cost, marginal cost, and average total cost for each quantity from 1 to 6. Average Variable Cost Quantity (Dollars) Average Total Cost (Dollars) 1 2 10 12 The equilibrium price is Jurrently $20. Each firm produces Total Cost Marginal Cost (Dollars) (Dollars) 15 units, so the total quantity supplied in the market is units. In the long run, firms can enter and exit the market, and all entrants have the same costs as in the previous table. As this market makes the transition to its long-run equilibrium, the price will firm will quantity demanded will and the quantity supplied by each.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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