Respuesta :
Answer :
a.As N rises, the demand for each firm’s product will falls as a result of this each firm’s demand curve will shift left.
b.Q = 25/N
c.75/N
d.1250/N2 – 50
e.N = 5
Explanation:
a.As N rises, the demand for each firm’s product will falls as a result of this each firm’s demand curve will shift left.
b.The firm will produce where MR = MC:
100/N – 2Q
= 2Q
Q = 25/N
c.25/N
= 100/N – PP
= 75/N
d.Total revenue
= P + Q = 75/N +25/N = 1875/N2
Total cost = 50 + Q2 = 50 + (25/N)2
= 50 + 625/N2
Profit = 1875/N2 – 625/N2 – 50
= 1250/N2 – 50
e.In the long run, profit will be zero. T
Therefore:
1250/N2 – 50 = 0
1250/N2
= 50
N = 5
The answers of the various sub-parts are:
a. As N rises, the demand for each firm’s product will fall as a result of this each firm’s demand curve will shift left.
b. Q = 25/N
c. 75/N
d. 1250/N2 – 50
e. N = 5
The calculations of the various sub-parts:
a. As N increases, demand for each company's customers declines, leading each firm's demand curve to switch sides.
b.The firm will produce where MR = MC:
[tex]\frac{100}{N}[/tex]– 2Q = 2Q
Q = [tex]\frac{25}{N}[/tex]
c.[tex]\frac{25}{N}[/tex] = [tex]\frac{100}{N}[/tex] – PP =[tex]\frac{75}{N}[/tex]
d.Total revenue = P + Q = [tex]\frac{75}{N}[/tex] +[tex]\frac{25}{N}[/tex] =[tex]\frac{1875}{N2}[/tex]
Total cost = 50 + Q2 = 50 +[tex]\frac{25}{N} \times 2[/tex] = 50 +[tex]\frac{625}{N2}[/tex]
Profit = [tex]\frac{1875}{N2}[/tex] –[tex]\frac{625}{N2}[/tex] – 50 = [tex]\frac{1250}{N2}[/tex] – 50
e.In the long run, profit will be zero.
Therefore:
[tex]\frac{1250}{N2}[/tex] – 50 = 0
[tex]\frac{1250}{N2}[/tex] = 50
N = 5
To know more about the conditions and the calculation of the market in long-run, refer to the link below:
https://brainly.com/question/15076397
