The ethanol industry is perfectly competitive, and each producer has the long-run marginal cost function MC(Q) = 48 - 24Q +3Q². The corresponding long-run average cost function is AC(Q) = 48 12Q+Q². The market demand curve for ethanol is QD = 240 - 10P. - 1. What is one firm's inverse long-run supply curve with the minimum level of price for the firm to operate? 2. What is the optimal level of quantity produced by each firm in the long-run? 3. What is the long-run equilibrium price in this industry?

The ethanol industry is perfectly competitive, and each producer has the long-run marginal cost function MC(Q) = 48 - 24Q +3Q². The corresponding long-run average cost function is AC(Q) = 48 12Q+Q². The market demand curve for ethanol is QD = 240 - 10P. - 1. What is one firm's inverse long-run supply curve with the minimum level of price for the firm to operate? 2. What is the optimal level of quantity produced by each firm in the long-run? 3. What is the long-run equilibrium price in this industry?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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