What is the profit a typical firm will make

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An industry has 100 identical firms in an industry that behaves like a perfect competition (so all firms are price takers). Each firm has a short-run total cost curve of

C=0.2q^2 + 5q + 20

a. Calculate the short run supply curve for a representative firm as a function of price (P).

b. Calculate the industry short run supply curve.

c. Suppose the market demand is given by Q=-200P+6000. What is the short run equilibrium price and quantity?

d. What is the profit a typical firm will make?

e. Since all firms act like price takers, what is the long run equilibrium price in this market? Explain how you arrived at this answer.

Reference no: EM131011491

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