Maurice Tutor

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Category > Economics Posted 13 May 2018 My Price 7.00

daily demand for pizzas

The daily demand for pizzas is Q^d = 740-20P where

The daily demand for pizzas is Q^d = 740-20P where P is the price of a pizza. The daily costs for a pizza company initially include $50.00 in fixed costs (which are avoidable in the long run but sunk in the short run) and variable costs equal to VC - (Q^2/2), where Q is the number of pizzas produced in a day Marginal cost is MC = 2 Suppose that in the long run there is free entry into the market Assume fixed costs fall to $18 and, in the short run, the number of firms is fixed (so that neither entry nor exit is possible) and fixed costs are sunk. Instructions: Round your answers to the nearest whole number What is the new market equilibrium in the short run? Q = pizzas P = S There are firms in the short run. What is the new market equilibrium in the long run? Q = pizzas. P = S There are firms in the long run.

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Maurice Tutor
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Status NEW Posted 13 May 2018 12:05 PM My Price 7.00

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