The avocado growing industry in Chile isperfectly competitive, and each producer has along-run marginal cost curve given byMC (Q) = 50+5Q. The corresponding long-run average cost function is given byAC (Q) = 50+ 3Q+72. The market demandcurve is QD = 350 – 2P.1. What is the long-run quantity produced byeach firm?2. What is the long-run equilibrium price in thisindustry?3. How many active producers are in theavocado growing industry in the long-runcompetitive market?

In perfect competition, there exists a large number of buyers and sellers. A perfectly competitive…

The avocado growing industry in Chile is perfectly competitive, and each producer has a long-run marginal cost curve given by MC (Q) 50 +5Q. The corresponding long- run average cost function is given by AC (Q) = 50 + 3Q + 2. The market demand curve is QD = 350 – 2P. = 1. What is the long-run quantity produced by each firm? 2. What is the long-run equilibrium price in this industry? 3. How many active producers are in the avocado growing industry in the long-run competitive market?

The avocado growing industry in Chile is perfectly competitive, and each producer has a long-run marginal cost curve given by MC (Q) 50 +5Q. The corresponding long- run average cost function is given by AC (Q) = 50 + 3Q + 2. The market demand curve is QD = 350 – 2P. = 1. What is the long-run quantity produced by each firm? 2. What is the long-run equilibrium price in this industry? 3. How many active producers are in the avocado growing industry in the long-run competitive market?

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter11: Profit Maximization

Section: Chapter Questions

Problem 11.1P

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