The ethanol industry is perfectly competitive, and each producer has the long-run marginal cost function MC(Q) = 48 - 24Q +3Q². The corresponding long-run average cost function is AC(Q) = 48 - 12Q+Q². The market demand curve for ethanol is QD = 240 - 10P. - 4. What is the long-run industry (or market) supply curve? 5. What is the equilibrium quantity demanded in this market? How many active producers are in the ethanol market in a long-run competitive equilibrium?
The ethanol industry is perfectly competitive, and each producer has the long-run marginal cost function MC(Q) = 48 - 24Q +3Q². The corresponding long-run average cost function is AC(Q) = 48 - 12Q+Q². The market demand curve for ethanol is QD = 240 - 10P. - 4. What is the long-run industry (or market) supply curve? 5. What is the equilibrium quantity demanded in this market? How many active producers are in the ethanol market in a long-run competitive equilibrium?
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter10: Prices, Output, And Strategy: Pure And Monopolistic Competition
Section: Chapter Questions
Problem 6E
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