. Suppose that each firm in a competitive industry has the following costs: TC = 100...

. Suppose that each firm in a competitive industry has the following costs: TC = 100 + ???? 2 MC = 2???? Where ???? is an individual firm’s quantity produced. The market demand curve for this product is ????=100-P Currently, there are 10 firms in the market.

A. At what quantity is ATC curve at its minimum?

B. Give the equation for each firm’s supply curve for the short-run and for the long-run.

C. Give the equation for the market supply for the short-run (when there are 10 firms in the market).

D. What is the equilibrium price and quantity for this market in the short-run? (round up to the second decimal point)

E. In this equilibrium, is there incentive for firms to enter or exit?

F. In the long-run with free entry and exit, what is equilibrium price and quantity in this market?

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Expert Solution

Rahul Sunny answered 10 months ago

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