Market for books is perfectly competitive and constant cost

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The market for books is perfectly competitive and a constant cost industry. The short run industry supply curve is given by the equation P=10+Q, while the industry demand curve is given by the equation P=150-Q, where P is the market price and Q is the market quantity. The representative firm's MC vure can be written as MC=2q, and its TC id given by the equation TC=50+q2 thus (q2) is q square., Where q is the quantity produced by the firm.

a. What is the equilibrium price and the equilibrium market quantity for this good in the short run?

b. What is the profit maximizing quantity for a representative firm to produce in the short run?

Reference no: EM131166414

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