The market for drones is perfectly competitive. Assume for simplicity that fractions of everything, including firms, is possible. We have identical firms, each with a Total Cost curve of TC=257+g^2 and Marginal Cost curve MC=2q. Market demand is Q=797-2P. If the Fixed Cost increases by $10, what is the short-run market price?

Micro Economics For Today
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ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
ChapterP3: Market Structure
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The market for drones is perfectly competitive. Assume for simplicity that fractions of everything, including firms, is possible. We have identical firms, each with a Total Cost curve of TC=257+g^2 and Marginal Cost curve MC=2q. Market demand is Q=797-2P. If the Fixed Cost increases by $10, what is the short-run market price?
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