Find the short run equilibrium price-market quantity

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Reference no: EM13818257

There is currently 20 identical firms in a perfectly competitive market. Each firm has a cost function of the form: SC(q) = 10q² +200q + 7000. The market demand is P = -4QD + 3000.

a) Find the short run equilibrium price, market quantity, and firm quantity.

b) Explain why this is not a long run competitive equilibrium.

Reference no: EM13818257

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