This preview shows page 1. Sign up to view the full content.
Unformatted text preview: und your answers to the nearest whole number.
a. What is the new market equilibrium in the short run? Q* = 10 pizzas. P* = $10 . There are 50 firms in the short run. b. What is the new market equilibrium in the long run? Q* = 6 P* = $6 pizzas.
. There are 100 firms in the long run. Worksheet Section: ShortRun and LongRun Competitive Equilibrium The daily demand for pizzas is Qd = 750 25P http://e z to.mhe c loud.mc gr a w- hill.c om/hm.tpx? todo= pr intvie wSingle 1/3 1/21/2014 Assignme nt Pr int Vie w where P is the price of a pizza. The daily costs for a pizza company initially include $50.00 in fixed costs
(which are avoidable in the long run but sunk in the short run), and variable costs equal to where Q is the number of pizzas produced in a day. Marginal...
View Full Document
- Fall '13