Suppose that the identical firms in a perfectly competitive market for cakes have long-run total cost functions given by TC(Q) = 2Q³ - 6Q² + 10Q. Total cost is independent of the number of firms and total output in the market.
a. Describe the long-run supply curve for this industry.
b. Suppose market demand is = 2,500 - 30P. Solve for the long-run competitive equilibrium price, output per firm, and number of firms in the market.

Question

Suppose that the identical firms in a perfectly competitive market for cakes have long-run total cost functions given by TC(Q) = 2Q³ - 6Q² + 10Q. Total cost is independent of the number of firms and total output in the market.
a. Describe the long-run supply curve for this industry.
b. Suppose market demand is

Suppose that the identical firms in a perfectly competitive market for cakes have long-run total cost functions given by TC(Q) = 2Q<sup>3</sup> - 6Q<sup>2</sup> + 10Q. Total cost is independent of the number of firms and total output in the market. a. Describe the long-run supply curve for this industry. b. Suppose market demand is = 2,500 - 30P. Solve for the long-run competitive equilibrium price, output per firm, and number of firms in the market.

= 2,500 - 30P. Solve for the long-run competitive equilibrium price, output per firm, and number of firms in the market.

Quizplus · Accepted Answer

The Answer of Suppose that the identical firms in a perfectly competitive market for cakes have long-run total cost functions given by TC(Q) = 2Q³ - 6Q² + 10Q. Total cost is independent of the number of firms and total output in the market. a. Describe the long-run supply curve for this industry. b. Suppose market demand is = 2,500 - 30P. Solve for the long-run competitive equilibrium price, output per firm, and number of firms in the market.

Suppose That the Identical Firms in a Perfectly Competitive Market