Consider a perfectly competitive industry where all the firms have equal access to the same information and sell identical products with similar costs curves. The firm's total cost is represented as

TC= 100+5q²+10q

whereqis the quantity of output produced by the firm. Suppose the market demand for this product is given asp= 100-2q and the market supply function given asp=40+q whereqis the market quantity andp is the price in dollars.

(a)Calculate the market equilibrium price and quantity.

(b)Calculate the profit maximizing level of output for this firm.

(c)What is the total revenue and total costs of the firm?

(d)Obtain the firm's maximum profit and determine if he is earning supernormal profits or making a loss.

(e)Determine the number of firms in this industry.

(f) What is the average cost of the firm?