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In a competitive industry each firm has total costs C = q2 + 25. Demand increases from D0 =150 - 5p to D1 = 300 - 5p. Provide a pair of fully labeled diagrams showing "The Firm" and"The Industry" to outline the response to this increase in demand.
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What does this demand sequence mean? (I am assuming that x,y,and s are related products) Qx=1.5 -3.0Px + 0.8(Income) +2.0 Py -0.6 Ps +1.2(Advertising) Then a year passes and the values are: Px=2 I=2.5 Py=1.80 Ps=0.50 A=1 ...
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