Question 5:The avocado growing industry in Chile is perfectly competitive, and each producer has a long-runmarginal cost curve given by MC (Q) = 50+5Q. The corresponding long-run average costfunction is given by AC' (Q) = 50 +3Q +22. The market demand curve is QD = 350 – 2P.1. What is the long-run quantity produced by each firm?2. What is the long-run equilibrium price in this industry?3. How many active producers are in the avocado growing industry in the long-run competitivemarket?

In a perfectly competitive market there are large number of firms producing similar and identical…

e avocado growing industry in Chile is perfectly competitive, and each producer has a long-ru arginal cost curve given by MC (Q) = 50+5Q. The corresponding long-run average cost nction is given by AC (Q) = 50 +30 +2. The market demand curve is QP = 350 – 2P. What is the long-run quantity produced by each firm? What is the long-run equilibrium price in this industry? How many active producers are in the avocado growing industry in the long-run competitive market?

e avocado growing industry in Chile is perfectly competitive, and each producer has a long-ru arginal cost curve given by MC (Q) = 50+5Q. The corresponding long-run average cost nction is given by AC (Q) = 50 +30 +2. The market demand curve is QP = 350 – 2P. What is the long-run quantity produced by each firm? What is the long-run equilibrium price in this industry? How many active producers are in the avocado growing industry in the long-run competitive market?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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