Finding out the short run and long run profit maximizing price - quantity and number of firms in the industry.
One hundred perfectly competitive firms face the following cost function:
TC = 200 + 20 q + 2q2;
Furthermore, the market demand curve is:
Qd = 100 - P;
Find out the short-run supply curve of the firm and the market. What is the price, quantity, profit/loss for each firm? Is this industry in the long-run? If not, what will be the price in the long-run and how many firms will be in the industry?