ROUND ALL YOUR ANSWERS TO ONE DECIMAL PLACE.
The total cost curve of each firm in a perfectly competitive industry is given to be:
TC = 100 + q2
where q represents the quantity sold by a single firm. The MC = 2q.
Suppose that currently firms in this industry share a market demand given by QD = 3,000 – 7PD
where P represents price unit and Q represents the total number of units sold in the entire industry.
In longrun equilibrium:
a) What is the profit maximizing level of output (q) each firm produces?
q = ?
b) What is market price?
P = $?
c) What is the market quantity (Q)?
Q = ?
d) How many firms will operate in this market?
F = ?