5.30 250 1.50 1.00 $ 9.10 56 25 $3 2.50 NOTE: the MC of 6 5 units is equal to $2, the MC of 7.5 is $3, and the MC of 8 5 is $4. The picture above represents the cost structure for a representative firm Initially there are exactly 100 firms producing competing in this industry. Total demand is given by the following IM $1 20 MC What is the long-run equilibrium price Oasi Ob. $2 O c. $2.50 O d. $4.50 ATC AVC 4 5 6 7 8 9 10 11 12 13 100

5.30 250 1.50 1.00 $ 9.10 56 25 $3 2.50 NOTE: the MC of 6 5 units is equal to $2, the MC of 7.5 is $3, and the MC of 8 5 is $4. The picture above represents the cost structure for a representative firm Initially there are exactly 100 firms producing competing in this industry. Total demand is given by the following IM $1 20 MC What is the long-run equilibrium price Oasi Ob. $2 O c. $2.50 O d. $4.50 ATC AVC 4 5 6 7 8 9 10 11 12 13 100

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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