Consider an industry in which general managers (GM's) run firms. There are two types of GM's: exceptional and average. There is a fixed supply of 100 exceptional GM's and an unlimited supply of average GM's. Any individual capable of being a GM in this industry is willing to work for a salary of RM 144,000 per year. The long-run total cost of a firm that hires an exceptional GM at this salary is TCE(Q) = 144 + (1/2)Q', where O is annual output in thousands of units and total cost is expressed in thousands of RM per year. The long-run total cost for a firm that hires an average GM per year is TO(Q) = 144 + 0'. The market demand curve in this market is D(P) = 7200 - 100P