Each of 100 rms in a competitive market has a cost function of c(Q) = 72 + 2Q2 ,

Question

Each of 100 rms in a competitive market has a cost function of c(Q) = 72 + 2Q2
, meaning
each rm has a marginal cost of MC = 4Q. The market demand curve is QD = 600 5p.
a. Solve for the short-run equilibrium price and quantity (hint: rst, solve for an individual rm's supply
curve, and then multiply the quantity by 100 to get the market supply curve).
b. What prot level will each rm earn in the short-run?
c. In the long-run, will there be entry or exit from the market? Explain. What number of rms will be
active in the long run?

Explanation / Answer

total cost function of all firms= 10* c(Q) =720+20Q^2 hence MC =40Q equate MC to price and get anwers i m not able to see the demand function well ie Qd=600+or -5p or it is 6005p???

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