Consider a market where every firm and every potential entrant has the identical cost function C(q) = 3q3 − 6q2 + 6q. (a) Find the firm’s inverse supply function. b)SupposethemarketdemandfunctionisgivenbyQD(P)=20−2P.Find the long-run equilibrium price, quantity, and the number of firms. (c)Suppose the demand function suddenly becomes perfectly inelastic at quantity Q ̄ = 7. Find the long-run equilibrium price, quantity and the number of firms.
Consider a market where every firm and every potential entrant has the identical cost function
C(q) = 3q3 − 6q2 + 6q.
(a) Find the firm’s inverse supply function.
b)SupposethemarketdemandfunctionisgivenbyQD(P)=20−2P.Find the long-run
(c)Suppose the demand function suddenly becomes perfectly inelastic at quantity Q ̄ = 7. Find the long-run equilibrium price, quantity and the number of firms.
(d) [5] Suppose the demand becomes perfectly inelastic at quantity Q ̄ = 7, and the government decides to collect a per unit tax of t = 4 from the producers for every unit of the good they sell. Find the long-run equilibrium price, quantity and the number of firms
Please express final numerical answers in decimal format
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