HW chap 14-2


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Unformatted text preview: 10.00, each company produces 10 pizzas. Since demand is given by: Qd = 750 – 25P. Qd = 750 – 25 × (10). Qd = 500. http://e z to.mhe c loud.mc gr a w- hill.c om/hm.tpx? todo= pr intvie wSingle 2/3 1/21/2014 Assignme nt Pr int Vie w A total of 500 pizzas is demanded and supplied in this market. Therefore, there must be 50 firms producing pizza. Since the firms’ marginal costs have not changed and the number of firms is fixed in the short run, the market equilibrium will remain at the initial point over the short run. Active firms will be making positive profits because the price is greater than the now­lower ACmin . b. However, in the long run, firms will enter the market in...
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This note was uploaded on 01/22/2014 for the course ECO 3352 taught by Professor Ax during the Fall '13 term at Troy.

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