Create an Account

Already have account?

Forgot Your Password ?

Home / Questions / The wood-pallet market contains many identical firms each with the short-run total cost fu...

The wood-pallet market contains many identical firms each with the short-run total cost function where Q is the firm’s annual output and all of the firm’s $400 fixed cost is

The wood-pallet market contains many identical firms, each with the short-run total cost function STC(Q) = 400 + 5Q2, where is the firm’s annual output (and all of the firm’s $400 fixed cost is sunk). The corresponding marginal cost function is SMC(Q) = 5 + 2Q. The market demand curve for this industry is D(P) 262.5 - P/2, where is the market price. Each firm in the industry is currently earning zero, economic profit. How many firms are in this industry, and what is the market equilibrium price?

May 15 2020 View more View Less

Answer (Solved)

question Subscribe To Get Solution

Related Questions