The market demand for woozles is given by:
Qd = 2,400 – 20p
There is only one available technology, and it is employed by all producers—
actual and potential. It implies the following average cost function:
AC = 625q^–1 + 0.25q
Currently, 20 firms serve the market.
a. Find the individual firm’s supply curve.
b. Find the industry supply curve.
c. Determine the short‐run competitive price and output.
d. How much profit is the typical firm making?
e. Determine the long‐run competitive market price and quantity and how
many firms will operate.