Suppose that the perfectly competitive market for coffee beans is made up of identical firms with long-run total cost functions given by TC = 2Q³ - 24Q² + 80Q, where Q is 100,000 pounds of coffee beans. Assume that these cost functions are independent of the number of firms in the market and that firms may enter or exit the market freely. Market demand is
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a. Find the long-run equilibrium price, the quantity produced by each firm, and the number of firms in the industry.
b. Suppose that market demand increases to .
Solve for the new long-run competitive equilibrium and the number of firms in the industry under the new market demand condition.

Question

Suppose that the perfectly competitive market for coffee beans is made up of identical firms with long-run total cost functions given by TC = 2Q³ - 24Q² + 80Q, where Q is 100,000 pounds of coffee beans. Assume that these cost functions are independent of the number of firms in the market and that firms may enter or exit the market freely. Market demand is

Suppose that the perfectly competitive market for coffee beans is made up of identical firms with long-run total cost functions given by TC = 2Q<sup>3</sup> - 24Q<sup>2</sup> + 80Q, where Q is 100,000 pounds of coffee beans. Assume that these cost functions are independent of the number of firms in the market and that firms may enter or exit the market freely. Market demand is . a. Find the long-run equilibrium price, the quantity produced by each firm, and the number of firms in the industry. b. Suppose that market demand increases to . Solve for the new long-run competitive equilibrium and the number of firms in the industry under the new market demand condition.

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a. Find the long-run equilibrium price, the quantity produced by each firm, and the number of firms in the industry.
b. Suppose that market demand increases to

.
Solve for the new long-run competitive equilibrium and the number of firms in the industry under the new market demand condition.

Quizplus · Accepted Answer

The Answer of Suppose that the perfectly competitive market for coffee beans is made up of identical firms with long-run total cost functions given by TC = 2Q³ - 24Q² + 80Q, where Q is 100,000 pounds of coffee beans. Assume that these cost functions are independent of the number of firms in the market and that firms may enter or exit the market freely. Market demand is . a. Find the long-run equilibrium price, the quantity produced by each firm, and the number of firms in the industry. b. Suppose that market demand increases to . Solve for the new long-run competitive equilibrium and the number of firms in the industry under the new market demand condition.

Suppose That the Perfectly Competitive Market for Coffee Beans Is