A number of stores offer film developing as a service to their customers. Suppose that each store offering this service has a cost function (C) and a marginal cost (MC) of C(q) = 25 +0.40q+0.0625q² MC(q) = 0.40+0.125q. If the going rate for developing a roll of film is $8.00, is the industry in long-run equilibrium? No Find the price associated with long-run equilibrium. The market will be in long-run equilibrium when the price is $ (Enter your response rounded to two decimal places.)

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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A number of stores offer film developing as a service to their customers. Suppose that each store offering this service
has a cost function (C)
and a marginal cost (MC) of
C(q) = 25+0.40q+0.0625q²
MC(q) = 0.40+0.125q.
If the going rate for developing a roll of film is $8.00, is the industry in long-run equilibrium? No
Find the price associated with long-run equilibrium.
The market will be in long-run equilibrium when the price is $ (Enter your response rounded to two decimal places.)
Transcribed Image Text:A number of stores offer film developing as a service to their customers. Suppose that each store offering this service has a cost function (C) and a marginal cost (MC) of C(q) = 25+0.40q+0.0625q² MC(q) = 0.40+0.125q. If the going rate for developing a roll of film is $8.00, is the industry in long-run equilibrium? No Find the price associated with long-run equilibrium. The market will be in long-run equilibrium when the price is $ (Enter your response rounded to two decimal places.)
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