Consider a firm with the following production schedule and a fixed cost in the short run of 19. This fixed cost comes from using the unique quantity of the fixed input that minimizes LRAC. Assume all of the firms are identical firms in the long run and all the firms can only produce whole quantities (i.e., Q=3.5 not possible)
Consider a firm with the following production schedule and a fixed
cost in the short run of 19. This fixed cost comes from using the unique quantity of the fixed input that minimizes LRAC. Assume all of the firms are identical firms in the long run and all the firms can only produce whole quantities (i.e., Q=3.5 not possible)
q VC
1 16
2 29
3 40
4 49
5 59
6 71
7 86
8 106
a) Find the LR comp. eq. price, firm quantity, and market quantity if this LR equilibrium has 100 firms. (1 point)
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