Each of 1,000 identical firms in the competitive peanut butter industry has a short- run marginal cost curve given by SMC = 4 + Q. If the demand curve for this industry is P = 10 - (1/500)Q then what will be the equilibrium price in the short run? 8 6. 4

Each of 1,000 identical firms in the competitive peanut butter industry has a short- run marginal cost curve given by SMC = 4 + Q. If the demand curve for this industry is P = 10 - (1/500)Q then what will be the equilibrium price in the short run? 8 6. 4

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter9: Perfect Competition

Section: Chapter Questions

Problem 1QP

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Each of 1,000 identical firms in the competitive peanut butter industry has a short-
run marginal cost curve given by SMC = 4 + Q. If the demand curve for this
industry is P = 10 - (1/500)Q then what will be the equilibrium price in the short
run?
8
6
4
2

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