One should show the typical firm and the second should show the industry. An industry consisting of 80 identical firms is initially in long run perfectly competitive equilibrium. This is a constant costs industry. The price of a substitute product decreases. Using a pair of diagrams, one showing the typical firm and the other showing industry supply and demand , fully describe the short run impacts and the long run impacts of the change.
Gene operates a small business.
Derive Gene s seven short run cost functions. Calculate his profit maximizing choice for output and the level of profits. Indicate these choices on your graph 10. Ontario s dairy industry operates under the rules of short run perfect competition with many price-taking firms hiring milkmaids and cows to supply domestic consumers with fresh milk. The Ontario Minister of Labour has recently introduced a minimum wage program for milkmaids.