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Q. A number of stores offer film developing as a service to their customers. Suppose that each store offering this service has a cost function C(q) = 50 + 0.5q + 0.08q2 and a marginal cost MC = 0.5 + 0.16q.
1: If going rate for developing a roll of film is $8.50, is industry in long-run equilibrium? If not, find price associated with long-run equilibrium.
A number of stores offer film developing as a service to their customers. Suppose that each store offering this service has a cost function C(q) = 50 + 0.5q + 0.08q2 and a marginal cost MC = 0.5 + 0.16q.
2: If going rate for developing a roll of film is $8.50, is industry in long-run equilibrium? If not, find price associated with long-run equilibrium.
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