The demand curve and long-run supply curve for carpet cleaning in the local market are:
Q_D = 1,000 - 10P and Q_S = 640 + 2P.
The long-run cost function for a carpet cleaning business is:
C(q) = 3 .
The long-run marginal cost function is:
MC(q) = 6q.
If the carpet cleaning business is competitive, calculate the optimal output for each firm. How many firms are in the local market? Is the carpet cleaning industry an increasing, constant, or decreasing cost industry?

Question

The demand curve and long-run supply curve for carpet cleaning in the local market are:
Q_D = 1,000 - 10P and Q_S = 640 + 2P.
The long-run cost function for a carpet cleaning business is:
C(q) = 3

The demand curve and long-run supply curve for carpet cleaning in the local market are: Q<sub>D</sub> = 1,000 - 10P and Q<sub>S</sub> = 640 + 2P. The long-run cost function for a carpet cleaning business is: C(q) = 3 . The long-run marginal cost function is: MC(q) = 6q. If the carpet cleaning business is competitive, calculate the optimal output for each firm. How many firms are in the local market? Is the carpet cleaning industry an increasing, constant, or decreasing cost industry?

.
The long-run marginal cost function is:
MC(q) = 6q.
If the carpet cleaning business is competitive, calculate the optimal output for each firm. How many firms are in the local market? Is the carpet cleaning industry an increasing, constant, or decreasing cost industry?

Quizplus · Accepted Answer

The Answer of The demand curve and long-run supply curve for carpet cleaning in the local market are: Q_D = 1,000 - 10P and Q_S = 640 + 2P. The long-run cost function for a carpet cleaning business is: C(q) = 3 . The long-run marginal cost function is: MC(q) = 6q. If the carpet cleaning business is competitive, calculate the optimal output for each firm. How many firms are in the local market? Is the carpet cleaning industry an increasing, constant, or decreasing cost industry?

The Demand Curve and Long-Run Supply Curve for Carpet Cleaning