A perfectly competitive market contain 60 firms, each along with a total cost function of TC = 10y2 + 80 and a marginal cost function of MC = 20y. The market demand function is ymd = 600 - 7py.
a. If the market price is $80.00, how much will the firm generates and what will be its economic profits?
b. Draw out the market supply curve.
c. If the Walrasian auctioneer calls out a market price of $20.00, will the market be in equilibrium? State your answer.
d. Find out the market equilibrium price & quantity.