Suppose that the market for painting services is perfectly competitive. Painting companies are identical; their long-run cost functions are given by
.
Market demand is
.
a. Find the long-run equilibrium price in this industry.
b. Use market demand to find the equilibrium total industry output.
c. Find the equilibrium number of firms.

Question

Suppose that the market for painting services is perfectly competitive. Painting companies are identical; their long-run cost functions are given by  
.
Market demand is  
. 
a. Find the long-run equilibrium price in this industry.
b. Use market demand to find the equilibrium total industry output.
c. Find the equilibrium number of firms.

Quizplus · Accepted Answer

The Answer of Suppose that the market for painting services is perfectly competitive. Painting companies are identical; their long-run cost functions are given by  
.
Market demand is  
. 
a. Find the long-run equilibrium price in this industry.
b. Use market demand to find the equilibrium total industry output.
c. Find the equilibrium number of firms.

Suppose That the Market for Painting Services Is Perfectly Competitive