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Lasik eye surgery is provided in a constant cost competitive market in Dallas (think through the...

Lasik eye surgery is provided in a constant cost competitive market in Dallas (think through the graphical model before you start). Monthly demand can be described by the following equation: p = 3000-0.1 q

Each provider (surgeon/firm) has a monthly cost of producing surgeries of TC = 30,000 + 600q + 3q2

  1. Assuming the market is in a long run equilibrium, what will be the number of surgeries performed by each surgeon (q) and the number of Lasik surgeon/firms, and the market price and quantity.

b. What will be the short run firm supply equation and the short run market supply equation? Also, describe the market long run supply.

c. What is the equation for market supply elasticity as a function of price? What is the elasticity at equilibrium?

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