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Social Studies, 27.08.2020 04:01 kjdskcd4024
A perfectly competitive market is described by the Aggregate demand curve Q = 60 – 2P and the aggregate supply curve Q = -10 + 5P. A typical firm (and all firms are identical to each other) in the market has a cost function = 16 + 2Q + Q2
(a)Calculate the equilibrium price and quantity
(b)Show that the price you derive in part (a) is commensurate with the long run equilibrium of this market. Explain
(c)In the long run, how many firms will be in the market?
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A perfectly competitive market is described by the Aggregate demand curve Q = 60 – 2P and the aggreg...
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