Homework Economics Need Some Help Please

Posted on 2013-11-21 15:01:00 in Economics by BRADY

4. Assume that each firm in a perfectly competitive market faces the following long-run total cost function (LTC) and inverse demand function.



LTC = 2q - 2q2 + q3;



Inverse Demand: p = 1001 - Q,



where p is price, q is firm output, and Q is industry output. Note that minimum LAC occurs where q = 1 and LAC = 1. Determine the long-run equilibrium:



i. Price,

ii. Representative firm’s output (q),

iii. Industry output (Q), and

iv. Number of firms in the industry (n).



I know that LAC = 2-2q+q^2

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