Question
Answered step-by-stepAsked by zhe995353 on coursehero.com
Finding Short-Run and Long-Run Equilibrium A market initially has...
Finding Short-Run and Long-Run Equilibrium
A market initially has N=20 firms each with identical costs C(q)=0.25q2+100.
Demand is QD=1600-40p.
Assume a constant cost industry.
(a) Find the short-run market supply
ANS. (a) Each firm chooses q where MC=p 0 .5q=p q=2p
With N=20, QS=20(2p)=40p
please explain the answer why 0.5q=p then q=2p
Answer & Explanation
Solved by verified expertAnswered by srvpragya on coursehero.com
<p>sectetur adipiscing elit. Nam la<sub>s</sub>sectetur a</p>sectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor si
Unlock access to this and over
10,000 step-by-step explanations
Have an account? Log In
Step-by-step explanation
<p>sectetur a<sup>s</sup>sect</p><p>sectetur adipiscing elit. Nam lacinia pulvinar tortor nec facili</p><p>sectetur adipiscing elit. Nam la</p><p>s<sup>s</sup>secte</p><p>secte</p><p>sectetur adipiscing elit. Nam lacinia pulvinar tortor nec facili</p><p>sectetur ad</p><p>sectetur adipiscing elit. Nam lacinia pulvinar tortor nec fac</p><p>sectetur adipiscing elit. Nam lacinia pulvinar tortor nec</p><p>sectetur a</p><p>sectetur a</p><p>sectetur ad</p><p><strong>sectetur adipiscing elit. Nam</strong></p><p><strong>sectetur ad</strong></p><p>sectetur adi</p><p>sectetur</p><p>sectetur adipiscing elit. Nam lacinia pulvi</p><p>sectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam ris</p><p>s<sub>s</sub>sect</p><p>s<sub>s</sub>sectetur adipis</p><p>s<sub>s</sub>sectetur</p><p> </p><p> </p><p> </p><p> </p>
Get unstuck with a CliffsNotes subscription
Unlock every step-by-step explanation, download literature note PDFs, plus more.Get Access