Consider a perfectly competitive market with 1000 firms. The cost function of each firm is C(q) = 0.025q +200. The total demand in the market is given by Qp=60,000-10,000P. The supply curve for each firm is given by 20 The competitive price in this market is 2 v. HINT: you need to first find the total market supply. Each firm is producing 89.4 v units. The competitive market is in long run equilibrium: 4.5

Consider a perfectly competitive market with 1000 firms. The cost function of each firm is C(q) = 0.025q +200. The total demand in the market is given by Qp=60,000-10,000P. The supply curve for each firm is given by 20 The competitive price in this market is 2 v. HINT: you need to first find the total market supply. Each firm is producing 89.4 v units. The competitive market is in long run equilibrium: 4.5

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter25: Monopoly

Section: Chapter Questions

Problem 9E

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