all firms in a competitive industry have the following long-run total cost curve: C(q) = q3...

all firms in a competitive industry have the following long-run total cost curve: C(q) = q³ -10q² +36q, where q is the output of the firm

a. Find the price in the market and how many units each firm will sell in the long run

b. If the market demand was Q = 10p-5, how much output will be bought and sold in the market?

c. How many firms will exist in the long run?

d. What is their economic profit?

e. Suppose the market demand shifted right due to a shock (the supply/costs did not change). If the new market demand is Q=20p-25, how many firms would be in the market after the long run adjustment?

Expert Solution

Rahul Sunny answered 7 months ago

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