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Suppose that a representative firm in a perfectly competitive market has the following Total Cost Function: C(Q) = Q3- 20 Q2+150 Q. Note: being a representative firm means that all firms have the same cost structure.
a. What quantity amount will an individual firm produce in the long run?
b. What is the long-run equilibrium price for this industry?
c. Confirm that this is a long-run equilibrium by ensuring that long-run profits = 0. Be sure to show all of your work.
d. How many firms will operate in this long-run equilibrium if market demand is given by the demand function Q = 1000 - 3P?
a. List and fully describe the five stages of international development which a firm could consider or adopt when it decides to expand its operations outside its domestic market (s).
In the United States, a buyer of a new electric is eligible for a one-time federal income tax credit of up to $4,000. Show the effect of this tax credit graphically, assuming the $4,000 credit is a Pigouvian subsidy. Label the graph correctly and exp..
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