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(q) = 50+0.5q+0.08q²; and a marginal cost MC = 0.5+0.16q. 1. If the going rate for developing a roll of film is $8.50, is the industry in long-run equilibrium? If not, find the price associated with long-run equilibrium.

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(q) = 50+0.5q+0.08q²; and a marginal cost MC = 0.5+0.16q. 1. If the going rate for developing a roll of film is $8.50, is the industry in long-run equilibrium? If not, find the price associated with long-run equilibrium.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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