An industry currently has 100 firms, all of which have fixed costs of $16 and av

Question

An industry currently has 100 firms, all of which have fixed costs of $16 and avg. variable cost as follows:
Q Avg. Variable Cost ($)
1 1
2 2
3 3
4 4
5 5
6 6

a. Compute marginal cost and avg. total cost.

b. the price is $10. what is the total quantity supplied in the market?

c. as this market makes the transition to its long-run equilibrium, will the price rise or fall? will the quantity demanded rise or fall? will the quantity supplied by each firm rise or fall?

d. graph the long-run supply curve for this market

Explanation / Answer

Solution: Chapter 14 problem, MC, VC, ATC, long-run supply curve

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---