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Suppose a firm operates in a perfectly competitive market where every firm has the same cost...

Suppose a firm operates in a perfectly competitive market where every firm has the same cost function given by: C(q)=5q2+q+20

Suppose the market price changes. Below what price will this firm shut down? (what is the "shut-down price").

Sandboxes are produced according to the following cost function:

c(q) = q2 + 100

where the fixed cost of 100 represents an annual license fee the firms pay. Every firm uses the same technology to produce sanboxes. Recent trends have increased the demand to QD=2250–5p. In the short run, what will be the new equilibrium price?

Suppose demand remains high at QD=2250–5p in the long run.  What will be the long-run equilibrium price?

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