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The market for wheat is perfectly competitive and is characterized by the following: Short-run market price: $5/unit Market Demand: P = 100 - Q where
The market for wheat is perfectly competitive and is characterized by the following:
- Short-run market price: $5/unit
- Market Demand: P = 100 - Q
where Q denotes total quantity of units of wheat sold per day (in hundreds) and P is the price per unit in dollars.
Each firm that produces wheat has is characterized by the following long-run cost curves:
- Total Cost = 2q2 + 450
- Marginal Cost = 4q
where q is the quantity of units of wheat sold per day by each firm (in hundreds).
Solve for the following in the long-run:
- equilibrium price (P)
- firm-level quantity (q)
- market quantity (Q)
Please show steps of work and denote final answer clearly.
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