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# New Firm in Perfect Competition The market demand and supply curves in a perfectly competitive industry are given by: P = 24 - Q/1,000 and P = -4 +...

New Firm in Perfect Competition

The market demand and supply curves in a perfectly competitive industry are given by: P = 24 - Q/1,000 and P = -4 + Q/750.

Complete the following questions.

b) Calculate the equilibrium price and output in this industry.

Equilibrium price

= \$

Equilibrium output

=

c) Now assume that an additional firm is considering entering. This firm has a short-run MC curve defined by MC = 7 + 0.5q, where q is the firm's output. If this firm enters the industry, what output should it produce? (Hint: It will set P = MC.)

Output

=

b. Equilibrium price = P = \$12  ... View the full answer

• Thank you, very much. it was very helpful
• jayjayb47
• Apr 01, 2018 at 4:25pm
• Welcome. Your success is my greatness!
• kawira1
• Apr 01, 2018 at 4:53pm
• one more question? how did you get 21,000,000?
• jayjayb47
• Apr 01, 2018 at 4:54pm
• by multiplying 750,000*28
• kawira1
• Apr 01, 2018 at 4:56pm
• Thank you.
• jayjayb47
• Apr 01, 2018 at 4:58pm

a) Equilibrium Price= \$12 b) Equilibrium... View the full answer

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