Now lets discuss the short run on the same market. Assume there are 30 identical firms in a perfectly competitive market in the short run. Each firm faces the same short run total cost function: TC = 400 + 10q + q², MC = 10 + 2q, AFC = 400 AVC = 10 + q. If the market demand function is Qd = 1800 - 20p. Find the equilibrium profit of each firm on the market (rounding to the nearest dollar). -$32 $92 $122 $182 None of the above

Now lets discuss the short run on the same market. Assume there are 30 identical firms in a perfectly competitive market in the short run. Each firm faces the same short run total cost function: TC = 400 + 10q + q², MC = 10 + 2q, AFC = 400 AVC = 10 + q. If the market demand function is Qd = 1800 - 20p. Find the equilibrium profit of each firm on the market (rounding to the nearest dollar). -$32 $92 $122 $182 None of the above

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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