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An industry currently has 100 firms, each of which has fixed costs of $8 and average variable costs as follows: The equilibrium price is currently $15. Each firm produces   units, so the total quantity supplied in the market is   units.   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 will    , and the quantity supplied by each firm will    .

An industry currently has 100 firms, each of which has fixed costs of $8 and average variable costs as follows: The equilibrium price is currently $15. Each firm produces   units, so the total quantity supplied in the market is   units.   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 will    , and the quantity supplied by each firm will    .

Essentials of Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter12: The Cost Of Production
Section: Chapter Questions
Problem 3CQQ
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An industry currently has 100 firms, each of which has fixed costs of $8 and average variable costs as follows:

The equilibrium price is currently $15.
Each firm produces
 
units, so the total quantity supplied in the market is
 
units.
 
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 will    , and the quantity supplied by each firm will    .
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 Total Cost Marginal Cost Average Total Cost Quantity (Dollars) (Dollars) (Dollars) (Dollars) 1 1 3 3 4 7 5 9 6 11 The equilibrium price is currently $15. Each firm produces units, so the total quantity supplied in the market is units. 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 will and the quantity supplied by each firm will
Transcribed Image Text: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 Total Cost Marginal Cost Average Total Cost Quantity (Dollars) (Dollars) (Dollars) (Dollars) 1 1 3 3 4 7 5 9 6 11 The equilibrium price is currently $15. Each firm produces units, so the total quantity supplied in the market is units. 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 will and the quantity supplied by each firm will
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 Total Cost Marginal Cost Average Total Cost Quantity (Dollars) (Dollars) (Dollars) (Dollars) 1 1 3 3 4 7 5 9 6 11 The equilibrium price is currently $15. Each firm produces units, so the total quantity supplied in the market is units. 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 will and the quantity supplied by each firm will
Transcribed Image Text: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 Total Cost Marginal Cost Average Total Cost Quantity (Dollars) (Dollars) (Dollars) (Dollars) 1 1 3 3 4 7 5 9 6 11 The equilibrium price is currently $15. Each firm produces units, so the total quantity supplied in the market is units. 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 will and the quantity supplied by each firm will
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