Question 3 Suppose there are N identical firms that have a cost function equal toC(q) = 3q2. Suppose the firms operate in a perfectly competitive market, and face aperfectly elastic demand equal to P = 12. How many firms N should operate in themarket, such that, the equilibrium quantity is equal to Q∗ = 36

The demand and supply functions for different firms are given belowi) Qd = 200 – 2PQs= - 20 + 2Pii) Qd = 51 – 3PQs = -4 +8PDetermine the equilibrium price and equilibrium quantity for each firm

Question 1 Suppose there are two firms in the market of good X. The cost functionof firm 1 is C1(q) = q2, whereas the cost function of firm 2 is C2(q) = 3q2. Suppose thefirms operate in a perfectly competitive market and face a perfectly elastic demand atP = 30. Find the equilibrium quantity produced in this market. (Hint: Obtain eachfirm’s inverse supply curve and then add them horizontally.)

Assume that all firms in a competitive industry have cost curves given by TC = 128 +8q +2q2. Further, the market demand curve is given by: p = 72 - 2Q. In the long-run market equilibrium, profit for each firm equals:Group of answer choices032641024More information is required to answer this question.

Consider a monopolistically competitive market with N firms.Each firm's business opportunities are described by the following equations: Demand: Q=100/N-P Marginal revenue: MR=100/N-2Q Total cost: TC=50+Q^2 Marginal cost: MC=2Q a) How does N, the number of firms in the market, affect each firm's demand curve? Why? b) How many units does each firm produce? (The answers to this and the next two questions depend on N.) c) What price does each firm charge? d) How much profit does each firm make? e) In the long run, how many firms will exist in this market?

Consider a competitive, constant-cost industry. Firms operating in this market are identical and each firm's total cost is given by TC = 180 + 43q + 5q2. If the market demand curve is P = 331 - 2Q, what is the number of firms in this market in the long run?