Question 4An industry currently has 100 firms, each of which has fixed costs of $16 and average variableC+ts as follows:Quantity Average Variable CostAverage Total CostMarginal Cost1$12.2.346a. Compute a fim's marginal cost and average total cost for each quantity from 1 to 6.b. The equilibrium price is currently $10. How much does each firm produce? What is the totalquantity supplied in the market?c. In the long run, firms can enter and exit the market, and all entrants have the same costs as above.As this market makes the transition to its long-run equilibrium, will the price rise or fall? Will thequantity demanded rise or fall? Will the quantity supplied by each firm rise or fall? Explain youranswers.P312:31 PM12/22/202012 IAslelete*5%numhomeG H4J JO ULBMendalt grpgupctrlhomepgdnendinsertASUS Laptop一

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Question 4 An industry currently has 100 firms, each of which has fixed costs of $16 and average variable Cts as follows: Quantity Average Variable Cost Average Total Cost Marginal Cost 1 $1 2. 2 3 4 5 6. a. Compute a firm's marginal cost and average total cost for each quantity from 1 to 6. b. The equilibrium price is currently $10. How much does each firm produce? What is the total quantity supplied in the market?

Question 4 An industry currently has 100 firms, each of which has fixed costs of $16 and average variable Cts as follows: Quantity Average Variable Cost Average Total Cost Marginal Cost 1 $1 2. 2 3 4 5 6. a. Compute a firm's marginal cost and average total cost for each quantity from 1 to 6. b. The equilibrium price is currently $10. How much does each firm produce? What is the total quantity supplied in the 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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