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
Chapter25: Monopoly
Section: Chapter Questions
Problem 9E
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![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 QD=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
units.
The competitive market is in long run equilibrium: 4.5](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F45f3e0a4-3f21-4962-8ad5-de454383f96a%2F58b92534-2806-4dfe-9b66-9059369f08db%2F5ac1idb_processed.png&w=3840&q=75)
Transcribed Image Text: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 QD=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
units.
The competitive market is in long run equilibrium: 4.5
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