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Frm z, operating in a perfectly competitive market, can sell as much or as little as it wants of a good at a price of $16 per unit. its cost function is c = 50 + 4q + 2q2. the associated marginal cost function is mc = 4 + 4q and the point of minimum average cost is q min = 5. a. determine the firms profit-maximizing level of output. compute its profit. b. the industry demand curve is q = 200-5p. what is the total market demand at the current $16 price? if all firms in the industry have cost structures identical to that of firm z, how many firms will supply the market? c. the outcomes in part a and b cannot persist in the long run. explain why. find the markets price, total output, number of firms, and output per firm in the long run. d. comparing the short-run and long-run results, explain the changes in the price and in the number of firms.
Linear programming is a mathematical technique used to determine the optimal solutions to certain specific problems.
The article study for the demand, supply and the market equilibrium has been discussed. The article that has been review was published on August 2012.
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The organization and coordination of the activities of a business in order to achieve defined objectives.
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