Suppose that the market for painting services is perfectly competitive. Painting companies are identical; their long-run cost functions are given by: Market demand is: The long-run equilibrium price in this industry is $. 173.5 162.5 194.5 155.5

b. 162.5

Explanation:

Missing question "long-run cost functions are given by TC(Q)= 6Q^3-30Q^2+200Q"

TC(Q)= 6Q^3-30Q^2+200Q"

Marginal cost = 18Q^2 - 60Q + 200

Average Total Cost = 6Q^2 - 30Q + 200

ЭATC / ЭQ = 0

12Q - 30 = 0

Q = 2.5

ATC = 6Q^2 - 30Q + 200

ATC = 6*(2.5)^2 - 30(2.5) + 200

ATC = 37.5 - 75 + 200

ATC = 162.5

Thus, P = 162.5

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