An industry currently has 100 firms, each of which has fixed costs of $8 and average variable costs as follows:Complete the following table by deriving the total cost, marginal cost, and average total cost for each quantity from 1 to 6.Average Variable Cost(Dollars)Total CostMarginal Cost(Dollars)Average Total Cost(Dollars)Quantity(Dollars)11The equilibrium price is currently $15.Each firm producesunits, so the total quantity supplied in the market isunits.In the long run, firms can enter and exit the market, and all entrants have the same costs as in the previous table.As this market makes the transition to its long-run equilibrium, the price willquantity demanded willand the quantity supplied by eachfirm willUse the orange line (square point) to graph the long-run supply curve for this market.20191817Long-Run Supply161514 The equilibrium price is currently $15.Each firm producesunits, so the total quantity supplied in the market isunits.In the long run, firms can enter and exit the market, and all entrants have the same costs as in the previous table.As this market makes the transition to its long-run equilibrium, the price will- quantity demanded willand the quantity supplied by eachfirm willUse the orange line (square point) to graph the long-run supply curve for this market.20191817Long-Run Supply16151413121110102030405060708090100Quantity

Given, Total number of firms in the industry : 100 Fixed costs = $8 Equilibrium is at $15

Answered: An industry currently has 100 firms,…

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An industry currently has 100 firms, each of which has fixed costs of $8 and average variable costs as follows:

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter11: Price And Output Determination: Monopoly And Dominant Firms

Section: Chapter Questions

Problem 3E

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