To operate as a tree-removal firm in Berkeley, a firm needs to obtain a license from the City of Berkeley. The licensing fee is $8,400 per month, and tree removers can decide every month whether or not to continue their license. If they decide not to continue the license, they do not have to pay the $8,400 but they cannot continue removing trees. Licenses cannot be resold or transferred to other firms. Tree removers also face a fixed cost associated with renting equipment equal to $1,600 per month and variable costs are given by the following formula: VC(Q) = 20Q + Q^2 where Q is the number of trees removed in a month. Assume that the market for tree removal in Berkeley is perfectly competitive. a. Write the formula for the total monthly costs of a tree removal firm in Berkeley.

b. Lately, the tree removal market has been in a long-run competitive equilibrium. What is the long-run equilibrium price per removed tree? How many trees did each firm remove per month?