What price will the firm charge in the long run equilibrium

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Reference no: EM133278122

Question - Assume a firm in a perfectly competitive market has an average cost function given by AC(Q) = 350 - 6Q + 0.04Q².

1. Does this cost function refer to the short run or the long run? Explain your answer.

2. What level of output will the firm produce in the long run equilibrium?

3. What price will the firm charge in the long run equilibrium?

4. What profits will the firm make in the long run equilibrium?

5. If the total market demand in the long run is at the price in (4) is 5000 units, how many firms will be in the market? What will be the four-firm concentration ratio in the industry?

Reference no: EM133278122

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