Business, 11.01.2020 03:31 BigGirlsTheBest

Consider a competitive industry in which each firm has the following total cost function: c(q) = aq + 16q - 8q^2 + q^3. market demand for the good is given by q = 120 - 4p.

a. derive the expressions for each firm's average cost and marginal cost as functions of q.
b. verify that regardless of the value of the constant a, these curves meet at q = 4. do they meet anywhere else?
c. what is the short-run supply curve of each firm? explain.
d. suppose that a = 10 and initially that there are 10 firms. describe the long-run adjustments in the industry assuming any new firms have the same production costs.
e. verify that there would be 15 firms in total in the long run if a equals the number of firms in the industry.

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Consider a competitive industry in which each firm has the following total cost function: c(q) = aq...

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