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Suppose that the long-run total cost function for a typical producer is given by LRTC = 200q-3q²+ 0.02q³ where q is the output of the typical firm. Suppose that the market demand is given by Q = 10000 -20P, where Q is the total quantity demanded and P is the market price. Assuming that the industry exhibits constant costs and that all firms are identical, what is the long-run equilibrium output (q¹) of a typical producer, long-run equilibrium price (PLR) and number of firms operating (n) at the long-run equilibrium, respectively? qLR PLR = 50, p¹R = 75, n=85 ○ qLR ○ qLR = 100, PLR = 75, n=85 ○ qLR = 50, PLR = 40, n=92 OqLR = 100, PLR = 40, n=92

Suppose that the long-run total cost function for a typical producer is given by LRTC = 200q-3q²+ 0.02q³ where q is the output of the typical firm. Suppose that the market demand is given by Q = 10000 -20P, where Q is the total quantity demanded and P is the market price. Assuming that the industry exhibits constant costs and that all firms are identical, what is the long-run equilibrium output (q¹) of a typical producer, long-run equilibrium price (PLR) and number of firms operating (n) at the long-run equilibrium, respectively? qLR PLR = 50, p¹R = 75, n=85 ○ qLR ○ qLR = 100, PLR = 75, n=85 ○ qLR = 50, PLR = 40, n=92 OqLR = 100, PLR = 40, n=92

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Suppose that the long-run total cost function for a typical producer is given by LRTC = 200q-3q²+ 0.02q³ where q is the output of the typical firm. Suppose that the market demand is given by Q = 10000 -20P, where Q is the total quantity demanded and P is the market price. Assuming that the industry exhibits constant costs and that all firms are identical, what is the long-run equilibrium output (q¹) of a typical producer, long-run equilibrium price (PLR) and number of firms operating (n) at the long-run equilibrium, respectively? qLR PLR = 50, p¹R = 75, n=85 ○ qLR ○ qLR = 100, PLR = 75, n=85 ○ qLR = 50, PLR = 40, n=92 OqLR = 100, PLR = 40, n=92
Transcribed Image Text:Suppose that the long-run total cost function for a typical producer is given by LRTC = 200q-3q²+ 0.02q³ where q is the output of the typical firm. Suppose that the market demand is given by Q = 10000 -20P, where Q is the total quantity demanded and P is the market price. Assuming that the industry exhibits constant costs and that all firms are identical, what is the long-run equilibrium output (q¹) of a typical producer, long-run equilibrium price (PLR) and number of firms operating (n) at the long-run equilibrium, respectively? qLR PLR = 50, p¹R = 75, n=85 ○ qLR ○ qLR = 100, PLR = 75, n=85 ○ qLR = 50, PLR = 40, n=92 OqLR = 100, PLR = 40, n=92
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