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i) The long run cost function for each firm in a perfectly competitive market is c(q) = 2^1.5+16q^0.5, LMC = 1.59^0.5+ 8q^-0.


-A competitive industry is in long run equilibrium. Each firm has c(q) = q^1.5+16q^0.5, MC = 1.5q^0.5+8q^-0.5, market demand
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Answer #1

Part 1 LMC = 1.590.5 +840 C(q) = q15 +16905 Finding average cost ql.s 는 0.5 t 16 & 오 오 to.5 +16705 For equilibrium ACE LMC &16 q For equilibrium Price (putting the value of q in demand curve) Demand I curve is 9 = 1600-2p 16 = 1600-20 2p = 1600-16 2

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