HW chap 14-2

# P10 thereare50 firmsintheshortrun

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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...
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