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Perfectly Competitive Markets

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The excel is attached, please advise how to go about solving

Market demand schedule for noodles
Price Q Demanded
5.4 50200
6.4 45200
7.4 40000
8.4 35000
9.4 30000
10.4 24800
11.4 19800
12.4 14800

THe market isperfectly cmpetitive wih constant input prices and each firm has the same cost structure from the table beow
Output Marginal Cost AVC ATC
150 6 8.8 16.5
200 6.4 7.8 13.6
250 7 7 11.64
300 7.65 7.1 10.97
350 8.4 7.2 10.52
400 10.4 7.5 10.4
450 12.4 8 10.58
500 12.7 9 11.32
Initially there are 100 firms in the industry

1) what is the market price and output in the short run?
2) what is the ecomonic profit of each firm in the short run?
3)what is the shutdown point for firms in the short run?
4)what is the long run equilibrium price and the number of firms?

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Solution Summary

Perfectly competitive markets are assessed. The market price and output in the short run are given.

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