Please explain

3.3 A large number of rms enter the Swedish market for the game Padel. For simplicity assume that they all act as price takers and let the cost function for each of them be given by CIlq)=1OOO+O.l-'q2 where q is the number of customers served. a) Assume that price is equal to 100 kronor. How much will each rm produce if it maximizes prots? How high are prots? b) In a spreadsheet program (such as Excel) create a column with quantity 1, 2, 3 etc all the way to 200 (we'll give tips on how to do this in lecture 5}. In additional columns calculate total cost (C(qll, average total cost (Clql/q), average variable cost (C(qlAFllq} and marginal cost. Create a graph with q on the horizontal axis and the cost measures on the vertical axis. Briey comment on their shapes. c} In the long run free entry should drive prot to zero. At this point p=MC=ATC. Intuitively, why is this the case? CI) The condition in c) implies that in a free entry equilibrium with rms that have the same cost function each rm's production will be given by the lowest point in the average total cost curve. How much does each rm produce in the free entry equilibrium? What is price in this equilibrium? (Hint: You can either differentiate the expression for average cost to determine its minimum or you can look for the minimum point using your graph in b). e) Assume that overall demand is given by Q=1200-2*P. How many rms will there be in equilibrium