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Posted: January 9th, 2024
Determine the short run equilibrium price and quantity in this industry.
Determine the short run equilibrium price and quantity in this industry.
Microeconomics
A industry consists of 20 producers, all of whom operate with the identical short-run total cost curve ST C(Q) = 16+2Q+Q^2. The market demand curve for A is D(P ) = 110?P , where P is the market price.
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a) Assuming that all of each firm’s $16 fixed cost is sunk, what is a firm’s short-run supply curve? What is the short run market supply curve?
b) Determine the short run equilibrium price and quantity in this industry.(assume all of each firm’s $16 fixed cost is sunk)
c) Assuming that all of each firm’s $16 fixed cost is non-sunk, what is a firm’s short supply curve? What is the short run market supply curve?
d) Determine the short run equilibrium price and quantity in this industry.(assume all of each firm’s $16 fixed cost is non-sunk)
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