Nn4 Suppose that the perfectly competitive market for milk is made up of identical firms with long-run total cost functions given byTC(Q) = 5Q³ – 30Q² +500, where Q is a gallon of milk. Assume that these cost functions are independent of the number offirms in the market and that firms may enter or exit the market freely. Market demand is QD = 10,000 - 200 P. Suppose that thelong-run equilibrium price is $5, the quantity produced by each firm is 3, and the number of firms in the industry is 3,000 firms.Suppose that market demand increases to Q₂ = 14,000 - 200P. Solve for the new long-run competitive equilibrium number offirms. Give your answer as a whole number.number of firms:

A perfectly competitive firm produces at P = MC = AC in the long run. TC = 5Q3 - 30Q2 + 50Q Divide…

Suppose that the perfectly competitive market for milk is made up of identical firms with long-run total cost functions given by TC(Q) = 5Q³ − 30Q² +500, where Q is a gallon of milk. Assume that these cost functions are independent of the number of firms in the market and that firms may enter or exit the market freely. Market demand is Q¹ = 10,000 - 200P. Suppose that the long-run equilibrium price is $5, the quantity produced by each firm is 3, and the number of firms in the industry is 3,000 firms. Suppose that market demand increases to Q₂ = 14,000 - 200P. Solve for the new long-run competitive equilibrium number of firms. Give your answer as a whole number.

Suppose that the perfectly competitive market for milk is made up of identical firms with long-run total cost functions given by TC(Q) = 5Q³ − 30Q² +500, where Q is a gallon of milk. Assume that these cost functions are independent of the number of firms in the market and that firms may enter or exit the market freely. Market demand is Q¹ = 10,000 - 200P. Suppose that the long-run equilibrium price is $5, the quantity produced by each firm is 3, and the number of firms in the industry is 3,000 firms. Suppose that market demand increases to Q₂ = 14,000 - 200P. Solve for the new long-run competitive equilibrium number of firms. Give your answer as a whole number.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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