3] Assume several identical firms have the short run production function Q = √40L and pay a wage of 10 for each unit of labor employed. Fixed costs for each firm are 100. The market demand for the good is Qd = 100,000 -25P. How many firms are in the industry in the long run?

3] Assume several identical firms have the short run production function Q = √40L and pay a wage of 10 for each unit of labor employed. Fixed costs for each firm are 100. The market demand for the good is Qd = 100,000 -25P. How many firms are in the industry in the long run?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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3] Assume several identical firms have the short run production function Q = √40L and pay a wage of 10 for
each unit of labor employed. Fixed costs for each firm are 100. The market demand for the good is Qd =
100,000.25P. How many firms are in the industry in the long run?

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