3) Billy's Company intends to enter a new geographic market for smart meter systems. The product managers are discussing the conditions for profitable entry. The company's Market Research Unit (MRU) has calculated from internal sources the estimated total cost of production and sales. Production is batchedbased and proceeds in steps of 500 units (see the following table). Volume produced (# units) Total cost (in ) 0 100,000 500 127,125 1,000 149,000 1,500 166,375 2,000 180,000 2,500 190,625 3,000 199,000 3,500 205,875 4,000 212,000 4,500 218,125 5,000 225,000 5,500 233,375 6,000 244,000 6,500 257,625 7,000 275,000 7,500 296,875 8,000 324,000 8,500 357,125 9,000 397,000 9,500 444,375 10,000 500,000 The market analysis has identified several competitors offering qualitatively similar systems. e. Profits also attract other newcomers. How many firms would be viable at the given demand? What would be the market price ceteris paribus? (8 points)

This is an 8-point question and you need to use Courtnot for it.

You can see all the other questions (a-d) also as I asked each one separately.