What is the equilibrium price of honey

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Suppose honey is produced in a beehive using bees and sugar. Each honey producer uses one beehive which she rents for $20/month. Producing q gallons of honey in one month requires spending 5q dollars on bees, and 4q^2 on sugar. Let Q be the total market supply, and q is the supply of an individual firm. Therefore, q=Q/n where n is the total number of firms in the market. Suppose the demand for honey is given by Q=512-4P. Also, suppose there are 50 honey producers in the market. What is the equilibrium price of honey? How much profit does an individual producer make in a month?

Reference no: EM13152960

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