The market for sweet potatoes consists of 1,000 identical firms. The market demand curve is given by $Q ^ { d } = 1000 - 5 P$. Each firm has a short-run total cost curve of $S T C = 100 + 100 q +$ $100 q ^ { 2 }$, and a short-run marginal cost curve of $S M C = 100 + 200 q$, where $q$ is output. All fixed costs are sunk. In short-run market equilibrium, each individual firm will:

Question

Quizplus · Accepted Answer

The Answer of The market for sweet potatoes consists of 1,000 identical firms. The market demand curve is given by $Q ^ { d } = 1000 - 5 P$. Each firm has a short-run total cost curve of $S T C = 100 + 100 q +$ $100 q ^ { 2 }$, and a short-run marginal cost curve of $S M C = 100 + 200 q$, where $q$ is output. All fixed costs are sunk. In short-run market equilibrium, each individual firm will:

The Market for Sweet Potatoes Consists of 1,000 Identical Firms Qd=1000−5PQ ^ { d } = 1000 - 5 PQd=1000−5P

The Market for Sweet Potatoes Consists of 1,000 Identical Firms $Q ^ { d } = 1000 - 5 P$