As in the previous problem, suppose Gi-hun's cost function is C(Q) = 32+2Q?, and that Gi-hun is one of many chauffeurs with identical costs in a competitive industry. Suppose the market demand curve for rides is Qd=1000-P. %3| a. Find the individual seller's supply curve. b. In long-run equilibrium, what must each seller's profits be? Find the long-run equilibrium price that satisfies this profit condition. c. In long-run equilibrium, what is the market quantity, and what is the quantity supplied by an individual seller? d. How many sellers will be in the market in long-run equilibrium? Given this number and your answer from part (a), find the market supply curve.

As in the previous problem, suppose Gi-hun's cost function is C(Q) = 32+2Q?, and that Gi-hun is one of many chauffeurs with identical costs in a competitive industry. Suppose the market demand curve for rides is Qd=1000-P. %3| a. Find the individual seller's supply curve. b. In long-run equilibrium, what must each seller's profits be? Find the long-run equilibrium price that satisfies this profit condition. c. In long-run equilibrium, what is the market quantity, and what is the quantity supplied by an individual seller? d. How many sellers will be in the market in long-run equilibrium? Given this number and your answer from part (a), find the market supply curve.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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