Lasguns are produced by identical firms in a perfectly competitive market. Each firm's Total Cost function is TC=404+q^2 and Marginal Cost function is MC=2q. Market demand is Q=621-P. How many firms are in the market in the long-run?

Lasguns are produced by identical firms in a perfectly competitive market. Each firm's Total Cost function is TC=404+q^2 and Marginal Cost function is MC=2q. Market demand is Q=621-P. How many firms are in the market in the long-run?

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter9: Perfect Competition

Section: Chapter Questions

Problem 7WNG

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Question

Lasguns are produced by identical firms in a perfectly competitive market.
Each firm's Total Cost function is TC=404+q^2 and Marginal Cost function
is MC=2q. Market demand is Q=621-P.

How many firms are in the market in the long-run?

Definition Definition Structure of the market that exists when many buyers and sellers exchange similar commodities and prices are fixed by market forces, demand, and supply. When there is perfect competition, a single business cannot impact the price or market value of the homogenous product.

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