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    Microeconomics

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    Problem Set #5

    Pizza restaurants are identical and exist in a market that is perfectly competitive. Marty's pizza parlor faces the following demand and costs...

    a) Derive the profit-maximizing output quantity and the profits that are achieved.
    b) Is the market in long-run equilibrium? If not, decribe what will happen in the market in the long run.
    c) Now, suppose that the price of pizza increases to $15 dollars. Again, derive the profit-maximizing output quantity and the profits that are achieved.

    Please see attached for full question.

    © BrainMass Inc. brainmass.com October 9, 2019, 4:38 pm ad1c9bdddf
    https://brainmass.com/economics/demand-supply/microeconomics-37812

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