iven by the equation Q D = 40 – 0.5P i. Determine the equilibrium price and quantity for this industry assuming it is competitive market. ii. Assuming government considers the current equilibrium price too high for the market and decides to set the new equilibrium price at 45, describe what the state of the market will look like CR, c) The short run production assumes there is at least one fi
Suppose marginal cost and thus market supply, for an industry is given by the equation P = 4Q S + 20. Also suppose the market demand curve is given by the equation Q D = 40 – 0.5P
i. Determine the
ii. Assuming government considers the current equilibrium price too high for the market and decides to set the new equilibrium price at 45, describe what the state of the market will look like CR,
c) The short run production assumes there is at least one fixed factor input. The production function relates the quantity of factor inputs used by a business to the amount of output that result. Using an appropriate diagram explain the short run production and stages of production.
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