In a perfectly competitive industry, each firm has the following long run (total) cost function:C = q² – 50q² + 750qWhere q is the firm's output.The market demand function is Q = 2,000 – 4p where Q is the market output and p is themarket price.a. Find the long-run market supply curve for this industry.b. Find the number of firms in this industry in the long run.C. Suppose the government imposes an excise tax of $50 per unit of output. Find thenumber of firms in this industry in the long run.

Output is the amount, either utilized or employed for more manufacturing, of products or services…

Answered: In a perfectly competitive industry,…

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter7: Perefect Competition

Section: Chapter Questions

Problem 5SQP

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