3. Suppose the total cost of q units produced by an increasing-cost industry is given by C(g) =q + 8 q On the demand side, the aggregate willingness to pay for q units of the good is WTP(q) = 100 q – 2 q g- a) Find the aggregate supply and aggregate demand functions. b) Derive the equlibrium assuming the market is competitive.

3. Suppose the total cost of q units produced by an increasing-cost industry is given by C(g) =q + 8 q On the demand side, the aggregate willingness to pay for q units of the good is WTP(q) = 100 q – 2 q g- a) Find the aggregate supply and aggregate demand functions. b) Derive the equlibrium assuming the market is competitive.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter12: The Partial Equilibrium Competitive Model

Section: Chapter Questions

Problem 12.6P

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