The market for sugar cane is perfectly competitive. A typical supplier has a fixed cos FC = 1200, a variable cost VC(q) = 400+2q; +4q?, and a marginal cost MC; = 2+8q where qi is the quantity produced in tons by company i. The total demand for sugar cane is given by q = 10000 - 2.5p. There are currently 500 producers. In the long run, the number of producers will be closest to (1) 216. (2) 385. (3) 421. (4) 479.

The market for sugar cane is perfectly competitive. A typical supplier has a fixed cos FC = 1200, a variable cost VC(q) = 400+2q; +4q?, and a marginal cost MC; = 2+8q where qi is the quantity produced in tons by company i. The total demand for sugar cane is given by q = 10000 - 2.5p. There are currently 500 producers. In the long run, the number of producers will be closest to (1) 216. (2) 385. (3) 421. (4) 479.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: Firms In Competitive Markets

Section: Chapter Questions

Problem 5CQQ

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