Determine the consumer and producer surplus

Reference no: EM13182559

Suppose there are 100 firms in a perfectly competitive industry. Each firm has a U shaped long-run average cost curve that reaches a minimum of $10 at an output level of 8 units. Marginal costs are given by

MC(q)=q+2 and market demand is given by Q=200-20P

Find the long-run equilibrium in this market and determine the consumer and producer surplus.

Reference no: EM13182559

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