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3241004551 [841]
2 years ago
13

A perfectly competitive industry consists of many identical firms, each with a long-run average total cost of LATC = 800 – 10Q

+ 0.1Q2 and long-run marginal cost of LMC = 800 – 20Q + 0.3Q2. In long-run equilibrium, each firm produces a quantity of ____. 50 40 30 60
Business
1 answer:
Karolina [17]2 years ago
5 0

Answer:

50

Explanation:

According to the question, The computation of the quantity produce is shown below:

Here we use the differentiation LRAC to zero

\frac{\partial LRATC}{\partial Q}=-10+0.2Q=0\\\\ 0.2Q=10\\\\ Q=50

From above calculation it can be concluded that the each firm would be produced the quantity of long run equilibrium for 50

Hence, the first option is correct

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