A perfectly competitive industry consists of many identical firms, each with a long-run average total cost of LATC = 800 – 10Q+0

Economics Dec 13, 2020

A perfectly competitive industry consists of many identical firms, each with a long-run average total cost of LATC = 800 – 10Q+0.19 and long-run marginal cost of LMC = 800 - 20Q+0.3Q a. In long-run equilibrium, how much will each firm produce? b. What is the long-run equilibrium price? c. The industry's demand curve is g = 40,000 – 70P. How many units do consumers buy in long-run equilibrium? How many firms are in the industry? d. Suppose the industry's demand curve rises to QP = 40,600 – 70P. How many new firms will enter this constant-cost industry in the long run?

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