Essay
Suppose that the identical firms in a perfectly competitive market for cakes have long-run total cost functions given by TC(Q) = 2Q3 - 6Q2 + 10Q. Total cost is independent of the number of firms and total output in the market.
a. Describe the long-run supply curve for this industry.
b. Suppose market demand is 
= 2,500 - 30P. Solve for the long-run competitive equilibrium price, output per firm, and number of firms in the market.
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a. The long-run supply curve is horizont...View Answer
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