Essay
The demand curve and long-run supply curve for carpet cleaning in the local market are:
QD = 1,000 - 10P and QS = 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?
Correct Answer:
Verified
To determine optimal firm output, we fir...View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q82: Following Example 8.8 in the book, the
Q83: Table 8.1<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB3095/.jpg" alt="Table 8.1
Q84: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB3095/.jpg" alt=" Figure 8.4.2 -Refer
Q85: Use the following statements to answer this
Q86: Suppose a technological innovation shifts the marginal
Q88: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB3095/.jpg" alt=" Figure 8.3.1 -Refer
Q89: In the short run, a perfectly competitive
Q90: An industry analyst observes that in response
Q91: The long-run cost function for LeAnn's telecommunication
Q92: Marginal profit is negative when:<br>A) marginal revenue