How many firms are in industry-it is in long-run equilibrium

Assignment Help Business Economics

Reference no: EM13984403

In 2012, the box industry was perfectly competitive. The lowest point on the long-run average cost curve each of the identical box procedures was $4, and this minimum point occured at an output of 1,000 boxes per month. The market demand curve for boxes was:

Qd=140,000 - 10,000P

whee P was the price of a box (in dollars per box) and QD was the quantity of boxes demanded per month. The market supply curve for boxes was

QS= 80,000 + 5,000P

Where QS was the quantity of boxes supplied per month.

a) What was the equilibrium price of box? Is this the long-run equilibrium price?

b) How many firms are in this industry when it is in long-run equilibrium?

Reference no: EM13984403

Questions Cloud

What exactly does this deadweight loss represent : Mirk Labs is a British pharmaceutical company that currently enjoys a patent monopoly in Europe, Canada, and the United States on Zatab (pronounced zay-tab), an allergy medication. What wholesale price will Mirk Labs set? How much Zatab will it produ..

What are the problems with this sort of relativism : Pick one of the three above, and write critically about Nagel's argument-is he missing something? Is he combining two things that should be kept separate? What can be said against his argument?

What is marginal revenue from extra dollar of advertising : The wilson company's marketing manager has determined that the price of elasticity of demand for its product equals -2.2. According to studies she carried out, the relationship between the amount spent by the firm on advertising and its sales is as f..

Calculate ratio of productivity country abc to country xyz : If annual average population growth rates had been 0.1% for A, 3.0% for B and 5.0% for C from 2000-2050, how much does the change in population growth rates from 2000- 2050 to 2050-2100 affect the steady state levels of per capita gdp for each cou..

How many firms are in industry-it is in long-run equilibrium : In 2012, the box industry was perfectly competitive. The lowest point on the long-run average cost curve each of the identical box procedures was $4, and this minimum point occured at an output of 1,000 boxes per month. What was the equilibrium price..

Discuss coverage for medications in two healthcare system : Compare access between the two healthcare systems for children, people who are unemployed, and for people who are retired. Discuss coverage for medications in the two healthcare systems

Importance of international trade is between countries : In a two paragraph summary, explain WHY countries trade and what the importance of international trade is between countries. A. Your summary should include the following concepts:

The classical dichotomy refers to the separation : The classical dichotomy refers to the separation of

Discuss a process improvement plan : Discuss a process improvement plan that would decrease the likelihood of a reoccurrence of the outcome of the scenario. Discuss a change theory that could be used to implement the process improvement plan developed in B

User Account

All Pages