Q. Competitive Market Equilibrium: The firm provides recycled toner cartridges for printers. The market is perfectly competitive.
TC=$4000+5Q+0.1Q2; MC=ΔTC/ΔQ=$5+$0.2Q, where Q is the number of recycled toner cartridges.
Calculate the firm's optimal output and profits if prices are stable at $55 per toner cartridge.
Calculate the firm's optimal output and profits if prices rise to $65 per unit.
Calculate equilibrium output, price and profit levels if the firm is typical in its industry.