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Unformatted text preview: the following long run total cost function: lrtc(x) = 4x 2 + 100x + 100. a) What is the long run equilibrium price for this industry? b) If market demand is given by the function X D = 1000 P, where P denotes price, how many firms will operate in this long run equilibrium? 4. Illustrate how all four points on the isoquant/isocost diagram at the right would be represented on a diagram representing total cost functions - both long-run and short-run. Assume L and K are the only two inputs in the production function. Econ 3130 Fall 2008 PS#5-XtraQ DUE at the start of class on Wednesday November 5 L K x x 1 2 A B C D...
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- Fall '06