Question

Suppose there are 1000 identical wheat farmers. For each, TC = 5+2q^2. Market demand is Q = 400,000 - 150p. Derive the short-run equilibrium Q, q, and p.
The marginal cost of each firm is =______. In a competitive market, we equate MC to ______ to determine how much each firm should produce. The short-run supply curve for the firm is q=______. The supply curve for the market is Q=______.
The short-run equilibrium price is $______. The market supply at that price is ____. Each firm makes______units.

Please fill in the blanks, thanks

Answer 1

TC = 5+2q^2

MC=4q(differentiate TC)

P=4q(Perfect competition equilibrium is characterized by a point where price=MC)

As there are 1000 identical wheat farmers.

q=0.25p

Since there are 1000 firms each producing q, marketsupply equals Q

= 1000*0.25p

Q=250p

For market equilibrium

250p=400000-150p

p=1000

Q=250000

q=250

The marginal cost of each firm is =__1000____. In a competitive market, we equate MC to Price_____ to determine how much each firm should produce. The short-run supply curve for the firm is q=_0.25p_____. The supply curve for the market is Q=__250p____.
The short-run equilibrium price is $__1000____. The market supply at that price is _250000___. Each firm makes_250_____units.