Use the following information to answer Questions 1 and 2. The perfectly competitive market for kitchen knives is at a short-run equilibrium with P = $89 and Q = 8370. Firms in the industry are perfectly competitive, with g3 – 5q? +17g+ 550. 1. What is the profit-maximizing level of output for each firm in the short run? Your answer should contain only numbers.

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Equilibrium Price and Quantity

Equilibrium refers to a state of balance that comes about because there is equality in all forces.