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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