Question: Each firm in a competitive market has a cost function of C=16+q 2 . The market demand function is Q=24-p. a . Draw two diagrams,

Each firm in a competitive market has a cost function of C=16+q2. The market demand function is Q=24-p.

a. Draw two diagrams, one for the market and one for a representative firm.

b. Determine the long run equilibrium price, quantity per firm and market quantity.

c.Determine the long run number of firms.

d. If market price is p=6, what will be the output of each firm? Why?

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