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

question 87

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) = 3 .
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:

Sole Shareholder

An individual or entity that owns 100% of the shares of a corporation.

Nonshareholder-Creditors

Creditors of an entity who, unlike shareholders, do not own any part of the entity but have a claim on its assets due to outstanding debts.

Shareholder Domination

A situation where a single shareholder or a group of shareholders exercise significant influence or control over the operations of a corporation.

Individual Shareholder

An individual who owns shares in a company, thereby holding a portion of the ownership.