There are currently 200 perfectly competitive firms producing output q. The cost function of each firm is C(q)=196+4q2 . The demand in this market is QD = 3,920-10P. Compute the equilibrium price and market quantity. Compute the profit of each firm. Compute the producer surplus in this market. Please show all work. (Mainly confused about how to find profit) Answers: p=112, Q=2,800, profit=588, PS=156,800
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There are currently 200
The cost function of each firm is C(q)=196+4q2 .
The demand in this market is QD = 3,920-10P.
Compute the
Please show all work. (Mainly confused about how to find profit)
Answers: p=112, Q=2,800, profit=588, PS=156,800
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