ANSWER THESE QUESTIONS WITH NUMERALS (e.g. 10, not "ten"). DO NOT INCLUDE UNITS (Like $). DO NOT INCLUDE PUNCTUATION (like , or .). Assume that the cost function for coronavirus testing machines, for any firm, is of the form C(q) = 5000 + (1/2)q? where q is the output of a single firm. Assume the demand for the machines is D(p) = 400 - p. Part 1. If this were a competitive market with free entry, what would be the long-run price of testing machines? The price will be Part 2. How many fırms would this market accommodate if it were perfectly competitive? There will be 28 fırms. Part 3. What is the consumer surplus for this perfectly competitive testing market? Consumer surplus will be

ANSWER THESE QUESTIONS WITH NUMERALS (e.g. 10, not "ten"). DO NOT INCLUDE UNITS (Like $). DO NOT INCLUDE PUNCTUATION (like , or .). Assume that the cost function for coronavirus testing machines, for any firm, is of the form C(q) = 5000 + (1/2)q? where q is the output of a single firm. Assume the demand for the machines is D(p) = 400 - p. Part 1. If this were a competitive market with free entry, what would be the long-run price of testing machines? The price will be Part 2. How many fırms would this market accommodate if it were perfectly competitive? There will be 28 fırms. Part 3. What is the consumer surplus for this perfectly competitive testing market? Consumer surplus will be

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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