The demand for croissants per day in Toquevile is: Q = 240 - 4P

a) There are many boulangeries, each of which has costs given by: TC(A) = 100 + 0.5q^2 (in )

What is the quantity each boulangerie produces, the market's equilibrium price and quantity,

the number of boulangeries being operation, and what is the market's long run supply function?

b) One of the boulangeries invents a new process which costs: TC(B) = 1000 + 5q

What happens to price? And the market as well as the firm's quantities, and the number of boulangeries?

How much profit will the firm(s) make?

c) Now the mayor of Toqueville has issued a yearly license to just one firm, which can operate as

many boulangeries with costs given by TC(A) as it desires. What is the new price, quantity for

the firm and each boulangerie, and number thereof currently in operation? What is the firm's

supply function, and why? What should this license cost?

d) Distinguish between the market structures in each of the cases above. Which is best for

the consumer? What does the boulangerie represent in each case? For example, does it represent just the

plant, the plant and the firm, or the plant, the firm, and the industry, considering how many there are in each firm and/or industry?