Question
You and your sister, Elsa, operate a firm that sells frozen popsicles in the kingdom of Arendelle. Firms that sell frozen popsicles in Arendelle operate
You and your sister, Elsa, operate a firm that sells frozen popsicles in the kingdom of Arendelle. Firms that sell frozen popsicles in Arendelle operate in a perfectly competitive market. Arendelle frozen popsicles are entirely identical (e.g., size, shape, color, quality). Each firm has a total cost of:TC(q)=80+120q2 and a corresponding marginal cost of: MC(q)=1/10qwhere q is the number of frozen popsicles made by each firm. There are currently 25 frozen popsicle firms in operation. The Arendelle market demand for frozen popsicles is: QD(P)=5000250Pwhere Q is the number of frozen popsicles sold and P is the price per frozen popsicle. What is the market price for frozen popsicles?
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