Consider a firm that produces output in a perfectly competitive market. The firm's total cost curve takes the form of TC=100+10Q+Q2 and marginal cost takes the form MC=10+2Q. The point of the minimum average total cost is Q=10.
a. If the market price is $50, determine the firm's profit-maximizing level of output,
b. How much profit will the firm earn?
c. If industry demand is Q=270−P and all firms have identical cost curves, how many firms will there be in the market?
d. What will the market price equal in the long-run?