In a certain perfectly competitive market, there are 150 firms, and the short-run total cost function of each is given by Short Term Total Cost (q) = 3q³ - 16q² + 40q + 432 (note that "q" is the quantity produced by the firm). Besides that, any firm (active or potential entrant) can produce according to the total cost function Short Term Total Cost (q) = 2q³ - 16q² + 148q (desconsidering the entrance or exit of firms). Furthermore, the inverse aggregate demand function of this market corresponds to Pd(Q) = 676 - 0.56Q (which "Q" is the total quantity demanded). Based on this information, please check True or False in the arguments below:
In a certain
1-The profit that each producer makes in the short-run competitive equilibrium is greater than the profit that each producer makes in the long-run competitive equilibrium. True or False?
2-In the long-term competitive equilibrium, there are 200 active firms in this market. True or False?
3-The
4-The closing price of each firm in the short term is p = $40. True or false?
5-In the long-run competitive equilibrium, the
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