D
Dakommisar
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A monopolistically competitve firm faces a demand curve given by q = 75 - p. The firm's long-run average cost curve is LAC = 120 - 4q + 0.05q^2. The slope of the LAC curve is -4 + 0.1q.
a. Calculate the firms long run equilibrium out put and the price for this output.
b. If this firm were producing at the minimum point on its LAC curve, as a perfectly competitive firm would be, what would its equalibrium output and price be?
a. Calculate the firms long run equilibrium out put and the price for this output.
b. If this firm were producing at the minimum point on its LAC curve, as a perfectly competitive firm would be, what would its equalibrium output and price be?