Question: Consider a perfectly competitive market where the demand for the good is given by Q = 738-5p, where Q denotes the quantity demanded at price

Consider a perfectly competitive market where the demand for the good is given by Q = 738-5p, where Q denotes the quantity demanded at price p. On the supply side, the good can be produced by identical firms with U-shaped average cost curves. The total cost of the industry as a function of total output, Q, is given by C(Q) = 5 Q.

What is the (long run) equilibrium price in this market?

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