Given equation:TC=1/8q^3-1.5Q^2+11.5QP=37-0.01q(demand)p=1+0.01q(supply)Questions1. What would be...

Question

Given equation:TC=1/8q^3-1.5Q^2+11.5QP=37-0.01q(demand)p=1+0.01q(supply)Questions1. What would be the long run price and quantity for this firm in a competitive market?2. In the long run how many firms are in the industry?

Robert · Accepted Answer

Given equation:
TC=1/8q^3-1.5Q^2+11.5Q
P=37-0.01q(demand)
p=1+0.01q(supply)
Questions
1. What would be the long run price and quantity for this firm in a competitive market?
 This is where long run average cost-LAC is a minimum
LAC= TC/q = q^2/8 -1.5q +11.

Given equation: TC=1/8q^3-1.5Q^2+11.5Q P=37-0.01q(demand) p=1+0.01q(supply) Questions 1. What would be the long run price and quantity for this firm in a competitive market? 2. In the long run how...

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