Asked by
Carson Criss
on Dec 01, 2024
Verified
The snow removal business in East Icicle, Minnesota,is a competitive industry.All snowplow operators have the cost function C = Q2 + 4, where Q is the number of driveways cleared.Demand for snow removal in the town is given by Qd = 120 - P.The long-run equilibrium number of firms in this industry is
A) 120.
B) 29.
C) 56.
D) 58.
E) 59.
Cost Function
A mathematical relationship that describes how production costs change with changes in the volume of production.
Snow Removal
The process of removing snow after a snowfall to make travel easier and safer.
Long-Run Equilibrium
A state in which all factors of production and costs are variable, allowing firms to make adjustments so that supply equals demand, resulting in no economic profit in perfect competition.
- Assess the consequences of differing technology selections in an ideal competition market.
- Determine the output level at which total costs and revenue from sales are equal, using the price per unit.
Verified Answer
MM
Learning Objectives
- Assess the consequences of differing technology selections in an ideal competition market.
- Determine the output level at which total costs and revenue from sales are equal, using the price per unit.