Suppose that the widget industry is perfectly competitive. Each producer has the long-run average cost function:...

Suppose that the widget industry is perfectly competitive. Each producer has the long-run average cost function: AC(Q)=40-6Q+1/2Q². The market demand curve for widgets is given by: D(P)=2200-100P. What is the long-run equilibrium price in this industry, at this price how much would and individual firm produce and how many active producers are there in the long-run competitive equilibrium?

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Expert Solution

Ans. No. of active producers in the long - run = Total output produce/ each producer produces

= 0/6 = 0 producers

Rahul Sunny answered 2 years ago

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