Consider an industry with 6 identical firms, each facing a demand Q = 30,000 x [1/6 - 1/20 (p - p)], where Q is the output level by the firm, p is the price charged by the firm and p is the average price in the industry. Suppose each firm has a fixed cost 7500 and a marginal cost 35. What is p in a symmetric equilibrium when there is no entry or exit of any firm? (Round your answer to the nearest integer.) Your Answer:

Consider an industry with 6 identical firms, each facing a demand Q = 30,000 x [1/6 - 1/20 (p - p)], where Q is the output level by the firm, p is the price charged by the firm and p is the average price in the industry. Suppose each firm has a fixed cost 7500 and a marginal cost 35. What is p in a symmetric equilibrium when there is no entry or exit of any firm? (Round your answer to the nearest integer.) Your Answer:

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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