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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:

  1. equilibrium price (P)
  2. firm-level quantity (q)
  3. market quantity (Q)

Please show steps of work and denote final answer clearly.

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