What are the price and quantity in competitive equilibrium

Reference no: EM13241840

Consider the partial equilibrium setting in which the market inverse demand is given by p(y)=90-2y. Consider that there is a representative firm whose cost function is given by c(y)=4y^2.

Suppose the representative firm behaves as a price-taker. What are the price and quantity in competitive equilibrium? How much are consumer and producer surplus?

Reference no: EM13241840

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