Problem C

3. Basketballs are produced in a perfectly competitive industry where all firms are identical (same exact technology and cost curves). Each firm has a long-run total cost function of TC =50+ 2q2. The market demand function is Q = 160 - 0.5P. A. (2 points) Derive the equation for long-run average total cost. B. (2 points) Derive the equation for long-run marginal cost. C. (5 points) Find the long-run equilibrium price of basketballs and how many each firm produces. Show your work