1a. In a certain perfectly competitive market, total cost of the typical firm is given by TC = 9q2 + 11,025, where q represents the number of units produced by the firm.

In the short run the market price is $450. Find total revenue, total cost, and total profit for the typical profit-maximizing firm in this industry.

1b. Given your findings in part (a), do you expect the number of firms in the market to increase or decrease in the long run? Explain how the long-run change in the number of firms will affect the price in this market.

1c. Find the equation of the supply for an individual firm. If 90 identical firms are open for business, what is the equation for the market supply?

1d. What is the lowest price that allows the firms in this market to avoid negative profits?