Suppose that the market for gourmet deli sandwiches is perfectly competitive and that the supply of workers in this industry is upward-sloping, so that wages increase as industry output increases. Delis in this market face the following total cost: TC = Q³ − 20Q² + 40Q + W, where Q is the number of sandwiches, and W is the daily wage paid to workers. The wage, which depends on total industry output, equals W = 0.2NQ, where N is the number of firms. Market demand is QD = 700 - 15P. In the long-run equilibrium, the market price is $ $1600 $46.67 $13 $10

Suppose that the market for gourmet deli sandwiches is perfectly competitive and that the supply of workers in this industry is upward-sloping, so that wages increase as industry output increases. Delis in this market face the following total cost: TC = Q³ − 20Q² + 40Q + W, where Q is the number of sandwiches, and W is the daily wage paid to workers. The wage, which depends on total industry output, equals W = 0.2NQ, where N is the number of firms. Market demand is QD = 700 - 15P. In the long-run equilibrium, the market price is $ $1600 $46.67 $13 $10

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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