A perfectly competitive market is described by the Aggregate demand curve Q = 60 – 2P and the aggregate supply curve Q = -10 + 5P. A typical firm (and all firms are identical to each other) in the market has a cost function = 16 + 2Q + Q2 (a)Calculate the equilibrium price and quantity
(b)Show that the price you derive in part (a) is commensurate with the long run equilibrium of this market. Explain
(c)In the long run, how many firms will be in the market?

Explanation:

a )

At equilibrium price , total demand = total supply

60 – 2P =  -10 + 5P

7P = 70

P = 10 .

quantity produced Q = 60 - 2P = 60 - 2 x 10 = 40 .

b )

cost function C = 16 + 2Q + Q²

marginal cost MC = dC / dQ = 2 + 2Q

In the long run , no profit , or

marginal cost =  Average cost = Price

2 + 2 Q = 16 + 2Q + Q² / Q

2 Q + 2 Q² = 16 + 2Q + Q²

Q² = 16

Q = 4

Marginal cost = price

Price = 2 + 2 Q

= 2 + 2 x 4

= 10

Same as that in part ( a )

c ) No of firms

Production by one firm = 4

Total production = 40

no of firm = 40 /4 = 10 .

the correct answer is individualism and exchange. at this stage, children begin to question the rules, because they can see that there is more than one side to them. different individuals have different viewpoints. they won't be able to reach this stage because of ignorance, a lack of ethics or personal biases. that is because people with that characteristiscs are not able to distinguish what is good or what is bad and they can't pursue their individual interests.

responsibilities im assuming