There are currently 60 perfectly competitive firms producing output q. The cost function of each firm is C = 10 +3q². The demand in this market is QD = 1200 – 40p. Use this information to answer questions #9- 10. What is the short-run market equilibrium price in this market? a. $0.55 b. $3 c. $4 d. $12 е. $24 Based on the information from the previous questions, is this market currently in a long-run equilibrium? a. Yes, there will be no entry or exit in the long-run. b. Yes, firms will enter the market in the long-run. c. Yes, firms will exit the market in the long-run. d. No, firms will exit the market in the long-run.

There are currently 60 perfectly competitive firms producing output q. The cost function of each firm is C = 10 +3q². The demand in this market is QD = 1200 – 40p. Use this information to answer questions #9- 10. What is the short-run market equilibrium price in this market? a. $0.55 b. $3 c. $4 d. $12 е. $24 Based on the information from the previous questions, is this market currently in a long-run equilibrium? a. Yes, there will be no entry or exit in the long-run. b. Yes, firms will enter the market in the long-run. c. Yes, firms will exit the market in the long-run. d. No, firms will exit the market in the long-run.

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter9: Market Structure And Long-run Equilibrium

Section: Chapter Questions

Problem 7MC

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