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The total cost curve of a representative firm in a perfectly competitive market is given by TC=1\8X^3-1.5X^2+11.5X where x is quantity of output produced. The supply and demand for the market is given by the following two equations: P=37-0.01Xp, P=1+0.01Xs
1. Given this information, what would be the short-run profit-maximizing price and quantity a representative firm would choose to charge and produce, respectively?
2. What would be the amount of economic profit made by a representative firm?
3. What would be long-run price and quantity for a representative firm in this competitive market?
4. In the long-run, how many firms are in this industry?
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