How many firms will there be in long run equilibrium

Reference no: EM13192712

Suppose there are n identical firms in a market. Each firm has fixed cost equal to 392, and variable cost given by VC = 2q^2, where q is the amount that an individual firm produces. This means that an individual firm's marginal cost is given by MC = 4q. Also, the market demand is given by P = 1148 - 3Q, where Q is the total amount of the good produced by all of the firms combined. Therefore, Q = n*q.

How much output will each of them produce?

What will be the market price?

How many firms will there be in long run equilibrium?

Reference no: EM13192712

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