Q11 I dont know how i got them all wrong Consider the file Short Run & Long Run and ignore everything that happened inthe previous two questions. Start from the beginning. Assume that this is adecreasing-cost industry. Suppose that the demand for this product increasesby 1,200 units and stays at this higher level for ever. In the long run, as newfirms enter the industry, some technological progress takes place and as a resultthe average cost of production decrease by 8 dollars (The ATC curve shiftsdown vertically by $8). Then, in the long run, the equilibrium price of theproduct will equal 8.004200.00dollars per unit, the equilibrium quantityunits, and there will be 11.00firms in theindustry each making an economic profit of 40.00dollars. $72$68$64$60$56$52$48$44$40$36$32$28$24$20$16$12$8$41.500방법1.8002,1002.4002,7003,0003.3003,6003,9004.2004,500방법Market Supply and Demand Functions$72$68$64$60$56$52$48$44$40$36$32$28$24$20$16$12$80246 8101214161820Cost Functions for a Typical Firm in the Industry

Approach to solving the question: Re-evaluate the given data and questions, and reflect on how they…

Answered: Consider the file Short Run & Long Run…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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