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There are 30 firms operating on a market with perfect competition (n = 30). All the...

There are 30 firms operating on a market with perfect competition (n = 30). All the firms are identical and the representative firm (i) has the following cost structure: C = 300 + 4q + 5q^2 where qi represents the output of firm i. The total demand on the market is equal to: QD(P) = 388 ? P

1) What are the equilibrium price and output?

2) • How high is the profit of the individual firm? Will firms exit or enter the market if the price remains constant? Motivate your answer.

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