Assume that, for a perfectly competitive industry that has 100 identical firms, the market
demand supply functions are = 10,000 − 10 and =
1
3
(10 − 2,000) respectively.
A) Determine the equilibrium price and quantity for the industry.
B) Obtain the marginal cost of a single firm.
C) Find the profit at the equilibrium point and identify whether the firm makes positive
profit, normal profits or incurs loss
D) What price is needed for the firm to stay in the market?
E) Calculate the output at which marginal costs are minimized ?