Assume that Vartoli Saadettin decides to start up a peddler's trade. His bench is in a perfectly competitive market and has the following long-run total cost function: LRTC(q) = 80q – 8q² + q³ | Vartoli Saadettin also observes that market demand is given by: Q=12500-50P. Note that Q represents the market quantity, including all the other firms in the market. a) Derive the marginal cost and average cost functions for Vartoli Saadetin. b) Calculate the long-run equilibrium quantity to produce for Vartoli Saadetin. c) Calculate the long-run equilibrium price and the number of firms in the market.

Assume that Vartoli Saadettin decides to start up a peddler's trade. His bench is in a perfectly competitive market and has the following long-run total cost function: LRTC(q) = 80q – 8q² + q³ | Vartoli Saadettin also observes that market demand is given by: Q=12500-50P. Note that Q represents the market quantity, including all the other firms in the market. a) Derive the marginal cost and average cost functions for Vartoli Saadetin. b) Calculate the long-run equilibrium quantity to produce for Vartoli Saadetin. c) Calculate the long-run equilibrium price and the number of firms in the market.

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter8: Monopoly

Section: Chapter Questions

Problem 12SQP

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