What is the market equilibrium quantity?

where Q is the annual output Show more The long-run average cost for production of hard-disk drives is given bywhere Q is the annual output of a firm w is the wage rate for skilled assembly labor and r is the price of capital services. The corresponding long-run marginal cost curve isThe demand for labor for an individual firm is The price of capital services is r=1. a) In a long-run competitive equilibrium how much output will each firm produce? b) In a long-run competitive equilibrium what will be the market price? Note that your answer will be expressed in terms of w. c) In a long-run competitive equilibrium how much skilled labor will each firm demand? Again your answer will be in terms of w. d) Suppose that the market demand curve is given by What is the market equilibrium quantity? Again your answer will be in terms of w. e) What is the long-run equilibrium number of firms? Again your answer will be in terms of w. f) Using your previous answers determine the overall demand for skilled labor in this industry. Again your answer will be in terms of w. g) Suppose that the supply curve for skilled labor used in this industry isAt what value of w does the supply of skilled labor equal the demand for skilled labor you found in part (f)? h) Using your answer from part (g) go back to part (b) to determine the long-run equilibrium price in this industry. i) Using your answer from part (g) go back to part (d) to determine the long-run equilibrium quantity in this industry. j) Using your answer from part (g) go back to part (e) to determine the long-run equilibrium number of firms in this industry. Show less

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