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Consider a market where each operating firm has the cost function c(y) = 2y2 + 1....

Consider a market where each operating firm has the cost function c(y) = 2y2 + 1. The firms in this market face the industry demand function given by y = 204 − p. What is the industry supply function if there are n firms in this market? What is the equilibrium price in the long run for this market? Assuming free entry and exit of firms, how many firms will operate in this market in the long run and how much will each firm produce?

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Rahul Sunny answered 2 years ago
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