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Can someone show me how to get the answers on this. I am at a total loss. 1. A p

ID: 1178418 • Letter: C

Question

Can someone show me how to get the answers on this. I am at a total loss.


1.      A perfectly competitive industry has demand curve: P = 100 - .5Q, where Q is total output produced.  All firms in the industry have identical technology and face the same cost curve: C(Q) = 500 + 10Q + 0.5Q2 .   There are 10 firms in the industry.


a.       Derive the supply curve for a typical firm in the industry.

b.      Derive the industry supply curve.

c.       Find the equilibrium price and quantity.

d.      How much profit is the typical firm making?


e.       Is this a short run or long run equilibrium? Explain in words and illustrate using graph(s).

Explanation / Answer