Sandboxes are produced according to the following cost function: c(q) = q2 + 100, where the...

Sandboxes are produced according to the following cost function:

c(q) = q² + 100, where the fixed cost of 100 represents an annual license fee the firms pay. Every firm uses the same technology to produce sanboxes.

In the long run, what will be the equilibrium price?

The market demand for sandboxes is given by Q_D = 1500 – 5p. Find the long-run equilibrium market quantity?

The market demand for sandboxes is given by Q_D = 1500 – 5p. Find the long-run equilibrium number of firms?

Recent trends have increased the demand to Q_D=2250–5p. In the short run, what will be the new equilibrium price?

Suppose demand remains high at Q_D=2250–5p in the long run. What will be the long-run equilibrium price?

Suppose demand remains high at Q_D=2250–5p in the long run. What is the number of firms operating in the long run?

Suppose the operating fee is increased from 100 to 225. So now each firm has the cost function C(q)=q² + 225 In the long run, with the demand Q_D=2250–5p, what will be the equilibrium price?

Expert Solution

Rahul Sunny answered 1 year ago

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