Consider a perfectly competitive market with 1000 firms. The cost function of each firm is C(q) = 0.025q + 200.The total demand in the market is given by Qp=60,000-10,000P.The supply curve for each firm is given byThe competitive price in this market isv. HINT: you need to first find the total market supply. Each firm isproducingv units.True or False: The competitive market is in long run equilibrium.

The perfectly competitive market is the market in which the industry determines the quantity and…

Answered: Consider a perfectly competitive market…

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter12: The Partial Equilibrium Competitive Model

Section: Chapter Questions

Problem 12.9P

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