In a competitive market, the long-run demand is given by P = 20 - (0.01)*q Firms in the industry have as their cost structure the expression C = q3 - 5q2 + 10q. Determine: (a) equilibrium price b) Quantity produced-sold of the firm. c) What quantity is traded in the market? d) Over what time period does this market work? (short or long term?) e) What is the profit of the individual firm? f) What will be the behavior of the individual firm, will it exit or stay in the market?
In a competitive market, the long-run demand is given by P = 20 - (0.01)*q Firms in the industry have as their cost structure the expression C = q3 - 5q2 + 10q. Determine: (a) equilibrium price b) Quantity produced-sold of the firm. c) What quantity is traded in the market? d) Over what time period does this market work? (short or long term?) e) What is the profit of the individual firm? f) What will be the behavior of the individual firm, will it exit or stay in the market?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
In a competitive market, the long-run demand is given by
P = 20 - (0.01)*q
Firms in the industry have as their cost structure the expression
C = q3 - 5q2 + 10q.
Determine:
(a)
b) Quantity produced-sold of the firm.
c) What quantity is traded in the market?
d) Over what time period does this market work? (short or long term?)
e) What is the profit of the individual firm?
f) What will be the behavior of the individual firm, will it exit or stay in the market?
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