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Let a perfectly competitive industry have 100 identical firms with a marginal cost curve given by...

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Economics

Let a perfectly competitive industry have 100 identical firmswith a marginal cost curve given by MC = Q/2.

a. Construct the short run industry supply curve with 100firms.

b. Let the market demand curve be Q = 4000 – 200*P. Find theshort run equilibrium price, industry quantity, and firmquantity.

c. This is a constant cost industry with a cost of $8. Willfirms be making profits or losses in the short run equilibrium inb?

d. Find the long run equilibrium price, industry quantity, firmquantity, number of firms, and profit for each firm.

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