Homework answers / question archive / The long-run cost function of a firm producing widgets in a competitive market is given by y2 + O for y = 0 where y is the quantity of widgets

The long-run cost function of a firm producing widgets in a competitive market is given by y2 + O for y = 0 where y is the quantity of widgets

Economics

Share With

The long-run cost function of a firm producing widgets in a competitive market is given by y2 + O for y = 0 where y is the quantity of widgets. a. (6 points) Find the lowest price at which this firm will supply a positive number of widgets in the long run. What is the output of the firm at this price? b. (5 points) For the price you found in part (a), if there are 1,000 identical firms operating in this market, what would be the equilibrium market demand for widgets?