Menu

Ten Competitive Sawmills Currently Supply Lumber To A Market Whose Demand Q Depends On Lumber Price P As

0 Comment

a)
The market supply is sum of individual supply of 10 firms. The individual supply is
P = MC;
The cost function for any ith firm is
C: = 5q: + 0.05q7 + 80
Therefore,
P = MC = 5 + 0.1q;
: 9: = 10P…Economics