Is the industry for product alpha in equilibrium

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Reference no: EM13221988

Firm PQR produces a product 'Alpha' under perfect competition market conditions. The cost function for the firm is:
TC = 1500 + 200 Q + Q2

The market supply and demand equations for the product 'Alpha' in the perfect competition market are:
QS = 40,000 + 60 P
QD = 80,000 - 40 P

Task: Based on the information given above, calculate:
a. The profit maximizing output for PQR.
b. The economic profits earned by PQR.
c. Is the industry for product 'Alpha' in equilibrium?

Reference no: EM13221988

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