Question

Use the results from the problem above. The market for product Q has many identical firms, each having the short-run total cost function:

STC(q) = 400 + 5q + q²,

where q is the firm’s annual output. We also know that the market-level demand and supply curves are given as:

Market demand: Q^D = 262.5 – 0.5P,

Market supply: Q^S = – 30 + 6P,

where Q is the market level quantity and P is the unit price of Q and q.

How many firms will be producing this this market? (In the box below, write only the number without the percent sign as Canvas does not like symbols here. Write your answer as either (i) XX.XX (2 places to the right of the decimal) or (ii) 0.XXXX (4 places to the right of the decimal); for example 12.34 or 0.1234.)

Answer 1

answered by: anonymous