Exercise 2.9 Firms in a competitive industry have production costs C(q)=q²+20q+100 and the industry demand is QD(P)=1200-10P; a) Find the price, the production of the representative company, the production of the industry and the number of companies that will be part of the industry it in the long-term equilibrium. b) Suppose that demand shifts to Q°(P) = 1.800 - 12P. Find the price, quantity and profits of companies in the short term. Calculate the social welfare corresponding to this equilibrium. (c) Calculate the final long-term equilibrium. Describe the adjustment process in a graph.

Exercise 2.9 Firms in a competitive industry have production costs C(q)=q²+20q+100 and the industry demand is QD(P)=1200-10P; a) Find the price, the production of the representative company, the production of the industry and the number of companies that will be part of the industry it in the long-term equilibrium. b) Suppose that demand shifts to Q°(P) = 1.800 - 12P. Find the price, quantity and profits of companies in the short term. Calculate the social welfare corresponding to this equilibrium. (c) Calculate the final long-term equilibrium. Describe the adjustment process in a graph.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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