Answer:
Each firm produces a quantity of 50 in long run equilibrium.
Explanation:
If a perfectly competitive industry of many identical firms has a long-run average total cost of LATC = 800 – 10Q + 0.1Q² and long-run marginal cost of LMC = 800 – 20Q + 0.3Q², for long run equilibrium to occur, LATC must be equal to LMC i.e LATC = LMC.
Equating both cost equation to get quantity Q each firm produces gives;
800 – 10Q + 0.1Q² = 800 – 20Q + 0.3Q²
Bringing all the terms to one side of the equation, we will have;
800-800-10Q+20Q+0.10Q²-0.3Q² = 0
10Q-0.2Q² = 0
Factorizing out Q, the equation becomes;
Q(10-0.2Q) = 0
From the resulting equation;
10-0.2Q = 0
10 = 0.2Q
Q= 10/0.2
Q = 50
This shows that each firm produces a quantity of 50 in long run equilibrium.
Answer:
You didn't attach any sentences, so I'm assuming that you want a definition. According to literarydevices.net, "Oxymoron is a figure of speech in which two opposite ideas are joined to create an effect....such as 'cruel kindness,' or 'living death'." I hope this helps.
Answer:
$3,500 preferred; $2,500 common.
$3,000 preferred; $3,000 common.
$0 preferred; $6,000 common.
$4,200 preferred; $1,800 common.
$6,000 preferred; $0 common.
Answer:
-0.34
Explanation:
Given that,
Percentage increase in prices = 5%
Initial quantity demanded = 30,000
New quantity demanded = 2,500
By midpoint method,
Average quantity :
= (Initial quantity + New quantity) ÷ 2
= (30,000 + 2,500) ÷ 2
= 16,250
Change in quantity = (2,500 - 30,000)
= -27,500
Therefore, the price elasticity of demand is as follows:
= (Change in demand ÷ Average quantity demanded) ÷ Percentage increase in prices
= (-27,500 ÷ 16,250) ÷ 5
= -1.69 ÷ 5
= -0.34
