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69) Suppose that demand in the market is given by QD= 1500 - 100P. The number of firms in this market in long run equilibrium will be: (Hint: You should use what you know about the long run equilibrium price and quantity for each firm.) A) 10. B) 80. C) 90. D) 100. E) 1000.

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Deanna Hettinger
Deanna HettingerLv2
6 Nov 2018
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Related questions

1. Suppose you are given the following information about a particular industry:

Market Demand: QD = 6500 - 100P and Market Supply: QS = 1200P

Firm Total Cost Function: C(q) = 1500 + q2/200

Assume that all firms are identical, and that the market is competitive.

a.Find the equilibrium market price and quantity, and the firm's output and profits.

b.Would you expect to see entry into or exit from the industry in the long-run? Explain. What effect will entry or exit have on market equilibrium?

c.What is the lowest price at which each firm would sell its output in the long run? Is profit positive, negative, or zero at this price? Explain.

d.What is the lowest price at which each firm would sell its output in the short run? Is profit positive, negative, or zero at this price? Explain.

Suppose you are given the following information about a particular perfectly competitive industry:

QD= 6500-100P .....Market demand

QS= 1200P .....Market Supply

C(Q)=722+(Q2)/200 ......Firm's total cost function

Assume all firms in this perfectly competitive industry are identical.

a) Find the equillibrium price and the equilibrium quantity for the entire industry, the output supplied by the firm, and the profit of each firm.

b) Would you expect to see entry into or exit from this industry in the long run? Explain. What effect will entry or exit have on market equilibrium?

c) Suppose the long run total cost function is given by C(Q) = 6Q-3Q2+Q3. What will the price be in long run equilibrium in this industry? Is profit positive, negative or zero? Explain.

Suppose you are given the following information about an industry:

Qd = 6500 - 100P Market Demand

Qs = 1200P Market Supply

Assume further that a representative firm's cost function is::

C(q)= 722 + q^2 / 200 and Marginal cost of

MC(q) = q / 100

Assume further that firms are identical and the market is characterized by perfect competition.

A) Find the equilibrium price and quantity and the output the firm will produce in the short run. What is the profit of each firm?

B) Would you expect entry or exit to this industry in the long run? Explain. What effect would such entry/exit have on the market equilibrium?

C) What is the lowest price the firms may survive in the long-run? Is profit positive, negative, or zero at that price?

D) What is the lowest price the firm may sell in the short-run? Is profit positive, negative, or zero at that price?

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