1 a perfectly competitive industry has demand curve p

Reference no: EM13377422

1. A perfectly competitive industry has demand curve: P = 100 - .5Q, where Q is total output produced. All firms in the industry have identical technology and face the same cost curve: C(Q) = 500 + 10Q + 0.5Q2 . There are 10 firms in the industry.
a. Derive the supply curve for a typical firm in the industry.

b. Derive the industry supply curve.

c. Find the equilibrium price and quantity.

d. How much profit is the typical firm making?
e. Is this a short run or long run equilibrium?

Explain in words and illustrate using graph(s).

Reference no: EM13377422

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