Consider the same firm from the end of week quiz with the following TVC schedule and a fixed cost of 32. Q 1 2 3 4 5 6 7 8 9 10 TVC 20 30 36 44 54 66 80 96 114 134 Now let the demand for this good be given by the following schedule and assume that this is a perfectly competitive market with identical firms and free entry/exit. P 6 8 10 12 14 16 18 20 Qd 500 480 460 440 420 400 380 360 a. Assume that this market is in a long-run equilibrium. Show the long-run supply and the short-run supply (again, you may want to look in the textbook here) along with demand. Identify the equilibrium price and quantity. b. How many firms will there be in this market?
I'm trying to get you to notice something that I haven't told you yet here. (So you won't be able to remember it, don't even try!) In order to figure it out, I recommend first doing the first question from the End of Week Quiz. That should get you close. There's just one additional step to get the answer to this. You will probably need to consult the text.
Consider the same firm from the end of week quiz with the following TVC schedule and a fixed cost of 32.
Q 1 2 3 4 5 6 7 8 9 10
TVC 20 30 36 44 54 66 80 96 114 134
Now let the demand for this good be given by the following schedule and assume that this is a
P 6 8 10 12 14 16 18 20
Qd 500 480 460 440 420 400 380 360
a. Assume that this market is in a long-run equilibrium. Show the long-run supply and the short-run supply (again, you may want to look in the textbook here) along with demand. Identify the
b. How many firms will there be in this market?
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