A perfectly competitive painted necktie industry has a large number of potential entrants. Each firm has an identical cost structure such that long-run average cost is minimized at an output of 20 units . The minimum average cost is $10 per unit. Total market demand is given by 1500-50P
1.What is the industry’s long-run supply schedule?
2.What is the long-run equilibrium price The total industry output The output of each firm ? The number of firms? The profits of each firm?
I think I got most of #2 right, but #1 is the one giving me problems.
Really need help here.
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