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Suppose That the Perfectly Competitive Market for Granola Bars Is

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Suppose that the perfectly competitive market for granola bars is made up of identical firms with long-run total cost functions given by TC(Q) = 8Q3- Suppose that the perfectly competitive market for granola bars is made up of identical firms with long-run total cost functions given by TC(Q) = 8Q<sup>3</sup>- Q<sup>2</sup> + 200Q. Assume that these cost functions are independent of the number of firms in the market and that firms may enter or exit the market freely. Market demand is , where price is in cents. a. Using calculus, find the long-run equilibrium price, the quantity produced by each firm, and the number of firms in the industry. b. Suppose that market demand decreases to . Solve for the new long-run competitive equilibrium. Q2 + 200Q. Assume that these cost functions are independent of the number of firms in the market and that firms may enter or exit the market freely. Market demand is Suppose that the perfectly competitive market for granola bars is made up of identical firms with long-run total cost functions given by TC(Q) = 8Q<sup>3</sup>- Q<sup>2</sup> + 200Q. Assume that these cost functions are independent of the number of firms in the market and that firms may enter or exit the market freely. Market demand is , where price is in cents. a. Using calculus, find the long-run equilibrium price, the quantity produced by each firm, and the number of firms in the industry. b. Suppose that market demand decreases to . Solve for the new long-run competitive equilibrium. , where price is in cents.
a. Using calculus, find the long-run equilibrium price, the quantity produced by each firm, and the number of firms in the industry.
b. Suppose that market demand decreases to Suppose that the perfectly competitive market for granola bars is made up of identical firms with long-run total cost functions given by TC(Q) = 8Q<sup>3</sup>- Q<sup>2</sup> + 200Q. Assume that these cost functions are independent of the number of firms in the market and that firms may enter or exit the market freely. Market demand is , where price is in cents. a. Using calculus, find the long-run equilibrium price, the quantity produced by each firm, and the number of firms in the industry. b. Suppose that market demand decreases to . Solve for the new long-run competitive equilibrium. . Solve for the new long-run competitive equilibrium.

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a. We know that the long-run competitive...

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