What is the market equilibrium price

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The wood-pallet market contains many identical firms, each with the short-run total cost function STC(Q) = 400 + 5Q + Q² , where Q is the firm's annual output (and all of the firm's $400 fixed cost is sunk). The corresponding marginal cost function is SMC(Q) = 5 +2Q. The market demand curve for this industry is D(P) = 262.5 - P/2, where P is the market price. Each firm in the industry is currently earning zero economic profit. How many firms are in this industry, and what is the market equilibrium price?

Reference no: EM131248559

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