Compute the long-run competitive equilibrium price

Reference no: EM13245025

Consider an industry where all firms have the following technology:
f(x) = max {SQRT(x) - 2, 0}
and the aggregate demand function is X(p) = 200 - 5p.
1. Assuming that the input price is w = 1, compute the (short-run) competitive equilibrium price and quantity for any fixed number of firms, n.
2. Compute the long-run competitive equilibrium price and quantity.

Reference no: EM13245025

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