PS5.4.9 multi response question

July 5, 2021 at 1:35 AM Despondent over the Red Sox's terrible season, Prof. Gruber decides to quit his day job and start a bicycle manufacturing firm in Kendall Square. As he starts looking into the bicycle manufacturing industry, has some interesting features. First, he realizes that it opera competitive industry. Second, he finds that there are two technologies used by firms in the industry. Technology 1 uses solar power, and has a cost function c1(q) = q + 4q"2 + 32 for q>0. Technology 2 uses electricity from the grid and is more efficient, with a cost function C"2(q) = q +2q"2 _32 for q>0 . Assume that we are in the long run, so firms using both technologies can shut and leave the market at 0 cost, so that C(O) = 0 for both technologies. he realizes it Now, suppose that the government of Massachusetts offers solar subsidies to 100 bicycle manufacturers. These subsidies are for $80 and the manufacturers receive these subsidies as long as they construct a bicycle manufacturing plant using the newly-invented solar technology (i.e. technology 1).| 1. What is the new long term price (p') 2. How much will be produced in total by firms with technology 1(01)? 3. How much will be produced by total by firms with technology 2 (02) 4. How many firms will there be with technology 1 (N1) 5. How many firms would there be with technology 2 (N2) 6. How much profit will be earned by each firm with technology 1? 7. How much profit will be earned by each firm wrth technology 2