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Bong-Bong produce orange juice concentrate that operates in the competitive market. Estimated number of firms are...

Bong-Bong produce orange juice concentrate that operates in the competitive market. Estimated number of firms are 200. Suppose that the manager of the firm operating in a competitive market has estimated the firm’s average variable cost function to be AVC=10-0.03q+0.00005q2 and the total fixed cost is $600.

e)If the forecasted price of the firm’s output in $10 per unit, what is the optimal output and firm’s profit? What is the producer surplus?

f)What would happen in the long run in terms of number of firms, market price, and supply?

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