In a market that produces hotdogs operates in the long-run, and that each firm and potential entrant has a LRAC AC = 10Q²-5Q+ 20 and a LRMC MC = 30Q³ - 10Q +20, where Q is thousands of units per year. The demand for hotdogs is given as D(P) = 39,000 -2,000P. (a) Solve for the market clearing condition.

In a market that produces hotdogs operates in the long-run, and that each firm and potential entrant has a LRAC AC = 10Q²-5Q+ 20 and a LRMC MC = 30Q³ - 10Q +20, where Q is thousands of units per year. The demand for hotdogs is given as D(P) = 39,000 -2,000P. (a) Solve for the market clearing condition.

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter5: Investment Decisions: Look Ahead And Reason Back

Section: Chapter Questions

Problem 6MC

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