0% Plagiarism Guaranteed & Custom Written

What is the long-run equilibrium market price and quantity? What is the long-run number of firms in the industry? How much does each produce? What are their profits? Suppose that market demand drops so that the new demand curve is P =40 – (1/7)Q. If t

01 / 10 / 2021 Assignment

This paper circulates around the core theme of What is the long-run equilibrium market price and quantity? What is the long-run number of firms in the industry? How much does each produce? What are their profits? Suppose that market demand drops so that the new demand curve is P =40 – (1/7)Q. If t together with its essential aspects. It has been reviewed and purchased by the majority of students thus, this paper is rated 4.8 out of 5 points by the students. In addition to this, the price of this paper commences from £ 99. To get this paper written from the scratch, order this assignment now. 100% confidential, 100% plagiarism-free.

Perfectly competitive, constant-cost industry has a market demand curve P =50 – (1/7)Q.

Each firm has a U-shaped long-run average cost function with a minimum of $10. The

efficient scale of production for these firms is 5 units.

a) What is the long-run equilibrium market price and quantity?

b) What is the long-run number of firms in the industry? How much does each

produce? What are their profits?

c) Suppose that market demand drops so that the new demand curve is P =40 –

(1/7)Q. If the short-run marginal cost of firms is SMC= 2q – 5, what is the

short-run equilibrium price and quantity in the market? What is the output of

each firm in the short run?

d) Now find the new long-run equilibrium price and quantity. What is the new

equilibrium number of firms?



International House, 12 Constance Street, London, United Kingdom,
E16 2DQ

Company # 11483120

Benefits You Get

  • Free Turnitin Report
  • Unlimited Revisions
  • Installment Plan
  • 24/7 Customer Support
  • Plagiarism Free Guarantee
  • 100% Confidentiality
  • 100% Satisfaction Guarantee
  • 100% Money-Back Guarantee
  • On-Time Delivery Guarantee
FLAT 50% OFF ON EVERY ORDER. Use "FLAT50" as your promo code during checkout