Problem
There are 40 identical firms in a competitive market, and there are no entry or exit barriers. Eachcompetitive firm has a cost function C(q) = 32 + 2q2. The market demand is given by Q = 200 -10p.
a. Derive each competitive firm's supply function (the firm's optimal output q as a function ofthe market price p).
b. What is the market supply function?
c. What is the equilibrium price and quantity in the market?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.