The Demand Curve and Long-Run Supply Curve for Carpet Cleaning

question 29

Essay

The demand curve and long-run supply curve for carpet cleaning in the local market are:
Q_D = 1,000 - 10P and Q_S = 640 + 2P. The long-run cost function for a carpet cleaning business is: C(q) = 3q². The long-run marginal cost function is: MC(q) = 6q. If the carpet cleaning business is competitive, calculate the optimal output for each firm. How many firms are in the local market?
Is the carpet cleaning industry an increasing, constant, or decreasing cost industry?

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Definitions:

Internal Force

Forces that act within the object or system whose motion is being investigated, often responsible for changes in the shape or state of the object.

Customers

Individuals or entities that purchase goods or services from a business, forming the basis of its revenue and market success.

Managerial Quality

The effectiveness and capability of managers in leading and making decisions that contribute to the success of an organization.

Vision

A statement or idea about what the future looks like, often used by organizations to guide long-term planning and decision-making.