Please explain the solution for the following question (or solve the question and explain):

The question is already solved

g) (7 Points) n the long-run equilibrium of a competitive market, the market supply and demand are: Supply: P = 60 + 2Q Demand: P = 200 3Q, where P is dollars per unit and Q is rate of production and sales in hundreds of units per day. One rm in this market has a marginal cost of production expressed as: MC = 2.0 + 30q. Determine the economic rent that the typical rm enjoys and then briey explain what Economic rent means? Solution: Supply = Demand 60+2Q=200-3Q Q = 140/5 = 28 (hundred per day) P = 60 + 2(28) = $116 /unit MC = 116=2 +30q q = 3.8 (hundred per day) The economic rent that the rm earns in the long-run is the return to rm specic advantage (i=in terms of capital, labor, or etc.) and is equal to the producer. It is also called accounting prot. The producer surplus is the area of the triangle bounded by price, MC, and production rate, a triangle. P =116 q = 3.8 MC (lower point) = 3 Economic rent = (0.5)3.8(l l6 - 2) = $216.6 (hundreds)