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How much should a manufacturer produce

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Assume that the manufacturing of cellular phones is a perfectly competitive industry. The market demand for cellular phones is described by a linear demand function: QD = 6000 - 50P/ 9 . There are 50 manufacturers of cellular phones. Each manufacturer has the same production costs. These are described by long-run total cost functions of T C(q) = 100 + q^2 + 10q.

1) How much should a manufacturer produce?

2) Derive the industry supply curve.

3) Find the market price and aggregate quantity traded in equilibrium.

4) How much output does each firm produce? How much profit does each firm make?

Reference no: EM132789777

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