Question 5:The avocado growing industry in Chile is perfectlycompetitive, and each producer has a long-runmarginal cost curve given by MC (Q) = 50 +5Q.The corresponding long-run average cost function isgiven by AC (Q) = 50+3Q+72. The marketdemand curve is QP = 350 - 2P.1. What is the long-run quantity produced by eachfirm?2. What is the long-run equilibrium price in thisindustry?3. How many active producers are in the avocadogrowing industry in the long-run competitivemarket?

In perfect competition, There exists a large number of buyers and sellers. The firm will produce…

The avocado growing industry in Chile is perfectly competitive, and each producer has a long-run marginal cost curve given by MC (Q) = 50+5Q. The corresponding long-run average cost function is given by AC (Q) = 50+3Q+72. The market demand curve is QD = 350 - 2P. 1. What is the long-run quantity produced by each firm? 2. What is the long-run equilibrium price in this industry? 3. How many active producers are in the avocado growing industry in the long-run competitive market?

The avocado growing industry in Chile is perfectly competitive, and each producer has a long-run marginal cost curve given by MC (Q) = 50+5Q. The corresponding long-run average cost function is given by AC (Q) = 50+3Q+72. The market demand curve is QD = 350 - 2P. 1. What is the long-run quantity produced by each firm? 2. What is the long-run equilibrium price in this industry? 3. How many active producers are in the avocado growing industry in the long-run competitive market?

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 10PA

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