I have this Economics problem and I have been wrestling with can anyone help me?
This is all I was given.
Assume that a firm in a perfectly competitive market has the following average total cost
function.
ATC = Q2 - 100Q + 10,000 (the first Q is squared)
a) Graph the ATC function.
b) What is the long run equilibrium price in perfect competition? Use the graph in a) to find
your answer.
c) If the quantity demanded and supplied by the market at equilibrium is 50,000 units, how
many firms are there in the market assuming they all have the same average total cost?
d) Assume the price goes down in the short run to $7,200, what is the profit or loss of the
typical firm? How would the market return to long term equilibrium?
Let Marginal cost equal to:
MC = 3Q2 - 200Q + 10,000 (same in this one, the first Q is squared)
Can anyone help me?
This is all I was given.
Assume that a firm in a perfectly competitive market has the following average total cost
function.
ATC = Q2 - 100Q + 10,000 (the first Q is squared)
a) Graph the ATC function.
b) What is the long run equilibrium price in perfect competition? Use the graph in a) to find
your answer.
c) If the quantity demanded and supplied by the market at equilibrium is 50,000 units, how
many firms are there in the market assuming they all have the same average total cost?
d) Assume the price goes down in the short run to $7,200, what is the profit or loss of the
typical firm? How would the market return to long term equilibrium?
Let Marginal cost equal to:
MC = 3Q2 - 200Q + 10,000 (same in this one, the first Q is squared)
Can anyone help me?