What are the price and quantity consumed in the long run

Assignment Help Econometrics

Reference no: EM13236478

Suppose a competitive market consists of identical firms with a constant long-run marginal cost of $10. There are no fixed costs in the short run or long run. Suppose the demand curve is given by Q(P) = 1000-p

a. What is the short run perfectly competive equilibrium with 100 identical firms?

b. What are the price and quantity consumed in the long run competitive equilibrium?

c. Suppose one new firm enters that is di§erent from existing firms. The new firm has a constant marginal cost of $9 and no fixed costs, but can only produce 10 or fewr units of output. What are the price and quantity consumed in the new long-run competitive equilibrium?

Reference no: EM13236478

Questions Cloud

What is the profit maximizing price per dose of the drug : After spending 10 years and $1.5 billion, you have finally gotten the Food and Drug Administrationís approval to sell your patended wonder drug which reduces he aches and pains associated with aging.

Define synthetic sequence for the preparation of chrysoidine : The lab is synthesis of Methyl Red. The question is starting with the appropriate aromatic amine and using any other organic or inorganic reagent, outline a synthetic sequence for the preparation of Chrysoidine, Para red and Congo red

What are the positive leadership behaviors and traits : What are the culturally contingent leadership behaviors and attributes? What are the positive leadership behaviors and traits that are universally accepted that facilitate leadership effectiveness?

Explain why a business may decide to seek capital : Explain why a business may decide to seek capital from a foreign investor indicating the risk and rewards for such a decision. Provide support for rationale.

What are the price and quantity consumed in the long run : Suppose a competitive market consists of identical firms with a constant long-run marginal cost of $10. There are no fixed costs in the short run or long run. Suppose the demand curve is given by Q(P) = 1000-p

The moon''s geological timescale is based on : The Moon's geological timescale is based onThe Moon's geological timescale is based on

Explain the process of financial planning used to estimate : Explain the process of financial planning used to estimate asset investment requirements for a corporation. Explain the concept of working capital management. Identify and briefly describe several financial instruments that are used as marketable ..

Explain the name and formula of ten substances : Write the name and formula of 10 substances that you would not be appreciably soluble in water.

What is difference in the industry of today and that of 1950 : Compare the automotive manufacturing industry of today to the automotive manufacturing industry of the 1950s. Applying the enconomics of price and output, what is the difference between the industry of today and that of the 1950s.

User Account

All Pages