The market for drones is perfectly competitive. Assume for simplicity that fractions of everything, including firms, is possible. We have identical firms, each with a Total Cost curve of TC=334+q^2 and Marginal Cost curve MC=2a. Market demand is Q=807-2P. If the Marginal Cost for every firm decreases by $10 at every quantity, what is the short-run market price? (You can assume that MC>=AVC at every quantity for this question).

The market for drones is perfectly competitive. Assume for simplicity that fractions of everything, including firms, is possible. We have identical firms, each with a Total Cost curve of TC=334+q^2 and Marginal Cost curve MC=2a. Market demand is Q=807-2P. If the Marginal Cost for every firm decreases by $10 at every quantity, what is the short-run market price? (You can assume that MC>=AVC at every quantity for this question).

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter25: Monopoly

Section: Chapter Questions

Problem 9E

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