10.7 a. Equilibrium in the entrepreneur market requires . Hence .
MC = q – 10
In long run equilibrium: AC = MC so
Total output is given in terms of the number of firms by Now in terms of supply-demand equilibrium, QD = 1500 – 50P and P = MC = q – 10, or q = P + 10.
QS = nq = n(P + 10).
Have 3 equations in Q, n, P. Since and Q = n(P + 10), we have or
n = 50 (= # of entrepreneurs)
q = Q/n = 20
P = q – 10 = 10
w = 4n = 200.
b. Algebra as before, , therefore n = 72
q = Q/n = 24
P = q – 10 = 14
w = 4n = 288
c.
This curve is upward sloping because as new firms enter the industry the cost curves shift up: as n increases, AC increases.
这是找的答案,不过是英文版的。
现在才学完初级微观……