We now assume the firm producing a steel bar is under monopolistic competition. When the price of the steel bar is $ 30,000, the quantity demanded is 8 metric tons, a 100% change in the price would change the quantity demanded by 25%. The firms fixed cost is $45,000. Its variable cost in thousands at each level of production are 45, 85, 120, 150, 185, 225, 270, 325, 390, and 465. 1. At what production output should the firm produce in the long run? 2. At what price should the firm sell its product in the long run?
We now assume the firm producing a steel bar is under monopolistic competition. When the price of the steel bar is $ 30,000, the quantity demanded is 8 metric tons, a 100% change in the price would change the quantity demanded by 25%. The firms fixed cost is $45,000. Its variable cost in thousands at each level of production are 45, 85, 120, 150, 185, 225, 270, 325, 390, and 465. 1. At what production output should the firm produce in the long run? 2. At what price should the firm sell its product in the long run?
ChapterP3: Market Structure
Section: Chapter Questions
Problem 2KC
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We now assume the firm producing a steel bar is under
The firms fixed cost is $45,000. Its variable cost in thousands at each level of production are 45, 85, 120, 150, 185, 225, 270, 325, 390, and 465.
1. At what production output should the firm produce in the long run?
2. At what price should the firm sell its product in the long run?
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Publisher:
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