In a perfectly (or purely) competitive industry, all firms have the same costs. All firms have a minimum average total cost of $100 at a quantity of 200 and a minimum average variable cost of $46 at a quantity of 100. Initially, the industry is in long run equilibrium. At the long run equilibrium, the price is:
1
Expert's answer
2013-11-25T13:27:56-0500
At the long run equilibrium the firms produce the level of output, where price equals minimum average total cost (P = minATC). So, at the long run equilibrium the price is $100 per unit.
Numbers and figures are an essential part of our world, necessary for almost everything we do every day. As important…
APPROVED BY CLIENTS
Finding a professional expert in "partial differential equations" in the advanced level is difficult.
You can find this expert in "Assignmentexpert.com" with confidence.
Exceptional experts! I appreciate your help. God bless you!
Comments
Leave a comment