题目
pencils are produced in a perfectly competitive industry.The demand function for pencils is given by D(p)=100-p.The average cost of producing y units is given by AC(y)=4+(2-y)^2
问:Determine the individual supply curve of each firm and find the long run industry supply curve under the assumption of free-entry
问:Determine the individual supply curve of each firm and find the long run industry supply curve under the assumption of free-entry
提问时间:2020-11-03
答案
For each firm,its goal is to maximize the profit.In a market of free entry ,it requires P=MC.TC=AC*y=4y+y*(2-y)^2 MC=d(TC)/dy=3*y^2-8*y+8Solve this second-oder equation 3*y^2-8*y+8-P=0,we gety=4/3+((3...
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