A local tomato farm, Firm i, operates in a market characterized by perfect competition and has total costs given by = 500 + 10 + 5 2 and marginal cost given by = 10 + 10 . The market demand for tomatoes is given by = 105 - 0.5. The market demand represents quantity demanded across all buyers. Notice the use of subscript i to distinguish the output of Firm i () from and the output of other tomato farms operating in this perfectly competitive market. At market equilibrium, = = , where N is the total number of firms operating in the market. a. Write the equations showing the farm's average total cost, average variable cost, and average fixed cost, each as a function of quantity ( ). b. What is the break-even price and break-even quantity for this firm in the short run? c. What is the shut-down price and shut-down quantity for this firm in the short run? d. If the market price of the product is $50, how many units will this firm produce? e. Given a market price of $50, how many firms are in this market

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a Equations for average total cost ATC average variable cost AVC and average fixed cost AFC Average ... View the full answer