Order the answer to: Demand for microprocessors is given by P = 35 –

Assignment Help business-economics Order the answer to: Demand for microprocessors is given by P = 35 –

business-economics

Order the answer to: Demand for microprocessors is given by P = 35 –

Question Demand for microprocessors is given by P = 35 – 5Q, where Q is the quantity of microchips (in millions). The typical firm’s total cost of producing a chip is Ci = 5qi, where qi is the output of firm i. a. Under perfect competition, what are the equilibrium price and quantity? b. Does the typical microchip firm display increasing, constant, or decreasing returns to scale? What would you expect about the real microchip industry? In general, what must be true about the underlying technology of production for competition to be viable? c. Under perfect competition, find total industry profit and consumer surplus.
Subject business-economics
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