A competitive industry consists of identical 100 producers, all of whom operate with the identical short-run total cost curve TC(Q) = 50+ 10Q², where is the annual output of a firm. The market demand curve is QD=500-5P, where P is the market price.

Microeconomic Theory
12th Edition
ISBN:9781337517942
Author:NICHOLSON
Publisher:NICHOLSON
Chapter12: The Partial Equilibrium Competitive Model
Section: Chapter Questions
Problem 12.4P
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A competitive industry consists of identical 100
producers, all of whom operate with the
identical short-run total cost curve
TC(Q) = 50+ 10Q², where Q is the annual
output of a firm. The market demand curve is
QD=500-5P, where P is the market price.
1. What is the each firm's short-run supply
curve?
2. What is the short-run industry supply curve?
3. Determine the short-run equilibrium price
and quantity in this industry.
Transcribed Image Text:A competitive industry consists of identical 100 producers, all of whom operate with the identical short-run total cost curve TC(Q) = 50+ 10Q², where Q is the annual output of a firm. The market demand curve is QD=500-5P, where P is the market price. 1. What is the each firm's short-run supply curve? 2. What is the short-run industry supply curve? 3. Determine the short-run equilibrium price and quantity in this industry.
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