consider the following te

consider the following te

consider the following technology: C(y) = 4 + 8y + y^2 . all firms have this technology, so there is no room for all to profitably operate in the industry. Market demand for the poduct is P = 135 – (1/2)Y, where Y is market quantity. if these firms are price takers and entry/exit is costless, what is the  long run free entry equilibrium per-firm quantity produced by each firm in the industry? Do you have enough information to determine the number of firms who operate in such a long run free entry equilibrium? If yes, what is the number, if no, explain what else is needed?

%d bloggers like this: