The avocado growing industry in Chile is perfectly competitive, and each producer has a long-run marginal cost curve given by MC (Q) = 50+5Q. The corresponding long-run average cost function is given by AC (Q) = 50 +3Q+72. The market demand curve is QD = 350 - 2P. 2. What is the long-run equilibrium price in this industry? 3. How many active producers are in the avocado growing industry in the long-run competitive market?

The avocado growing industry in Chile is perfectly competitive, and each producer has a long-run marginal cost curve given by MC (Q) = 50+5Q. The corresponding long-run average cost function is given by AC (Q) = 50 +3Q+72. The market demand curve is QD = 350 - 2P. 2. What is the long-run equilibrium price in this industry? 3. How many active producers are in the avocado growing industry in the long-run competitive market?

Economics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506725

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter22: Price Takers And The Competitive Process

Section: Chapter Questions

Problem 6CQ: Suppose that the development of a new drought-resistant hybrid seed corn leads to a 50 percent...

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