Suppose that the industry is a constant cost industry and entry and exit of firms are allowed. Assume the firm's long-run cost function is given by LC = 9' -0.2q+ 4q . %3D a. Identify the most efficient plant size for the firm in the long-run by calculating the equilibrium output level. Brief discuss the process used to get your answer. b. Calculate long-run equilibrium market price in this industry. Brief discuss the process used to get your the answer. c. If the market demand for these firm's product is Q = 8,000 – 200p", determine the number of firms in the market under a long-run equilibrium. Brief discuss the process used to get your answer,

Suppose that the industry is a constant cost industry and entry and exit of firms are allowed. Assume the firm's long-run cost function is given by LC = 9' -0.2q+ 4q . %3D a. Identify the most efficient plant size for the firm in the long-run by calculating the equilibrium output level. Brief discuss the process used to get your answer. b. Calculate long-run equilibrium market price in this industry. Brief discuss the process used to get your the answer. c. If the market demand for these firm's product is Q = 8,000 – 200p", determine the number of firms in the market under a long-run equilibrium. Brief discuss the process used to get your answer,

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: Firms In Competitive Markets

Section: Chapter Questions

Problem 7PA

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