Draw graphs showing a perfectly competitive firm and industry in long-run
do you know that the industry is in longrun
Suppose that there is an increase in demand for
product. Show and explain the short-run
process for both the firm and the
Show and explain the long-run adjustment process
both the firm and the industry. What
happen to the number of firms in the new
Suppose the demand curve for a monopolist is
QD = 500
− P, and
the marginal revenue function
is MR = 500 − 2Q.
The monopolist has a constant
and average total cost of $50 per unit.
Find the monopolist’s profit-maximizing output
Calculate the monopolist’s profit.
c. What is the Lerner
Index for this industry?