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=334+q^2 and Marginal Cost curve MC=2a. Market demand is Q=807-2P. If the Marginal Cost for every firm decreases by $10 at every quantity, what is the short-run market price? (You can assume that MC>=AVC at every quantity for this question).
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=334+q^2 and Marginal Cost curve MC=2a. Market demand is Q=807-2P. If the Marginal Cost for every firm decreases by $10 at every quantity, what is the short-run market price? (You can assume that MC>=AVC at every quantity for this question).
Chapter19: Externalities And Public Goods
Section: Chapter Questions
Problem 19.1P: A firm in a perfectly competitive industry has patented a newprocess for making widgets. The new...
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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=334+q^2 and Marginal Cost curve
MC=2a.
Market demand is Q=807-2P.
If the Marginal Cost for every firm decreases by $10 at every quantity, what is the short-run market
price ? (You can assume that MC>=AVC at every quantity for this question).
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