Quantity of output produce

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A perfectly competitive firm is in the short run and has variable cost = 6q^2, and MC = 12q where q is the quantity of output produce. Also, the firm has fixed cost F = 1012.

(a) When the market price is $180, the firm should produce q = 15 to maximize profit.

(b) The firm will make $336 (Profit).

(c) *This is the part I'm having trouble with.* How do you go about finding the break-even price for this market? (I know that the breakeven price is calculate by MC = ATC = (TC/Q) and that the answer is ultimately $156. I just don't know how to get to this answer.

(d) *I'm also having trouble with this part.* Suppose the market demand is given by P=858-3Q where Q is the market quantity produced by all the firms. Assume there are "n" identical firms in the market. So Q = q * n. Find "n" (the number of firms). (*Again, I'm not sure what formula/inputs to use to get the correct answer.*)

Reference no: EM131713970

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