The Long-Run Cost Function Faced by Each Producer in a Perfectly

question 44

Essay

The long-run cost function faced by each producer in a perfectly competitive industry is given by: MC(Q)= 20 - 6Q + Q².The corresponding long-run average cost function is AC(Q)= 20 - 3Q + Q²/3.The market demand curve for the product is D(P)= 1100 - 50P.
a)What is the long-run equilibrium price in this industry? At this price,how much would an individual firm produce?

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Definitions:

Weld Symbol

A graphical representation on engineering drawings indicating the type of weld to be used.

Plug Weld

A type of weld used to fasten two pieces of metal together by filling a pre-drilled hole in the top piece with weld material which then attaches to the piece underneath.

Slot Weld

A type of weld used to join pieces of metal together through a slot in one piece that fits over another piece, typically used in sheet metal work.

Depth of Filling

The extent to which a cavity or mold is filled with material during a manufacturing or casting process.