Market clearing price and quantity

Reference no: EM1311061

Suppose a highly competitive market is described by the following supply and demand functions S= 3P=90 and D=7910 -5P .suppose also that a representative firm has costs given by C =250 + 30q +15q2

a.Obtain the market clearing price and quantity

b.Under the assumption of profit and maximization , how much output should the representative firm produce?

c.Are profits positive? Should the firm stay in business? Show your computations

d.Find the firms supply function?

e.How many firms are in the industry?

Reference no: EM1311061

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