In the long run how many firms will exist in the market

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Consider a monopolistically competitive -market with N firms. Each firm's business opportunities are described by the following equations: Demand:  =   -  Marginal Revenue: =   - 2 Total Cost:  = 50 +  Marginal Cost:  = 2

a. How does N, the number of firms in the market, affect each firm's demand curve? Why?

b. How many units does each firm produce?

c. What price does each firm charge?

d. How much profit does each firm make?

e. In the long run, how many firms will exist in this market?

Reference no: EM13220704

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