Suppose that a perfectly competitive firm's fixed cost is 100 and all of this fixed cost is a sunk cost. Its average variable cost is 3q/2. Suppose also that the firm's optimum output is 30 and the market demand is Q=2490-P. Find the number of firms operating in the short run.
Suppose that a perfectly competitive firm's fixed cost is 100 and all of this fixed cost is a sunk cost. Its average variable cost is 3q/2. Suppose also that the firm's optimum output is 30 and the market demand is Q=2490-P. Find the number of firms operating in the short run.
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter7: Economies Of Scale And Scope
Section: Chapter Questions
Problem 2MC
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choose the the right answer:
a) 80
b) 60
c) 120
d) 100
![Suppose that a perfectly competitive firm's fixed cost is 100 and all of this fixed cost
is a sunk cost. Its average variable cost is 3q/2. Suppose also that the firm's optimum
output is 30 and the market demand is Q=2490-P. Find the number of firms
operating in the short run.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F01a51b7e-bd0b-4302-9fad-e98c5bc4db03%2F265fa77b-3360-496b-affa-39fb4b498e02%2Feh5wd9ic_processed.png&w=3840&q=75)
Transcribed Image Text:Suppose that a perfectly competitive firm's fixed cost is 100 and all of this fixed cost
is a sunk cost. Its average variable cost is 3q/2. Suppose also that the firm's optimum
output is 30 and the market demand is Q=2490-P. Find the number of firms
operating in the short run.
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