At the very beginning, only Wing knew how to produce Good X, which made Wing the only seller in the market of Good X.Assume the following:

Market Demand for Good X: P=360-1Q

where P is the market price of Good X, and Q is the market quantity

Wing's total cost of production (TC): TC(q)=50+0.5q2

where q is the quantity supplied of Good X by Wing

Questions:

a) How many units of Good X should Wing produce to maximize his profit and what price Wing should charge? (5 points)

b) If Wing can practice perfect price discrimination, how many units of Good X should Wing produce and sell to maximize his profit? (5 points)

Later, other producers also find out how to produce Good X and share the same cost structure of Wing.Currently, there are 59 sellers (including Wing) competing in the form of perfect competition in the market.

Questions:

c) Given the number of sellers, find the market equilibrium price and market equilibrium quantity for Good X (the total quantity produced by all sellers). (4 points)

d) Continue from part c), what is the profit for Wing? (4 points)

e) In the long run with free entry and exit, what are the equilibrium market price and quantity? (4 points)

f) In the long run, how much does each firm produces? How many firms are in the market? (4 points)