A number of stores offer film developing as a service to their customers. Suppose that each store offering this service has a cost function (C) and a marginal cost (MC) of C(q) = 25 +0.40q+0.0625q² MC(q) = 0.40+0.125q. If the going rate for developing a roll of film is $8.00, is the industry in long-run equilibrium? No Find the price associated with long-run equilibrium. The market will be in long-run equilibrium when the price is $ (Enter your response rounded to two decimal places.)

A number of stores offer film developing as a service to their customers. Suppose that each store offering this service has a cost function (C) and a marginal cost (MC) of C(q) = 25 +0.40q+0.0625q² MC(q) = 0.40+0.125q. If the going rate for developing a roll of film is $8.00, is the industry in long-run equilibrium? No Find the price associated with long-run equilibrium. The market will be in long-run equilibrium when the price is $ (Enter your response rounded to two decimal places.)

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter12: Firms In Perfectly Competitive Markets

Section: Chapter Questions

Problem 9P

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