Question: 5. (9 marks) Suppose the market for table is competitive. A typical table seller has a cost function of C = 2q3 18q2 + 800q.

5. (9 marks)

Suppose the market for table is competitive. A typical table seller has a cost function of C = 2q3 18q2 + 800q.

a. If the prevailing market price is $800, find the profit-maximizing output level. (3 marks)

b. Find the market price at the long run competitive equilibrium of this market. (6 marks)

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