We appreciate a perfect competition market where there is a predetermined limit number of firms with 20 total firms. Each has the cost function such that: CTi = qi2 + 4qi + 3 where qi indicates numbers of firms (i = 20) The demand in the market is: Q = 100 - 4p a) What is the individual supply of each firm? b) What is the supply of the whole industry? c) Obtain the market equilibrium
COURSE:
We appreciate a perfect competition market where there is a predetermined limit number of firms with 20 total firms.
Each has the cost function such that: CTi = qi2 + 4qi + 3 where qi indicates numbers of firms (i = 20)
The demand in the market is: Q = 100 - 4p
a) What is the individual supply of each firm?
b) What is the supply of the whole industry?
c) Obtain the market equilibrium
In the case where a new firm intended to enter a monopolist's market:
(a) What kind of legitimate entry barriers can the firm face understanding the nature of the market it wishes to enter?
b) What type of anticompetitive barriers could the firm already in the market present?
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