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Perfect competitive market n=6, firms produce same good, x. Fixed cost for both firms is $15...

Perfect competitive market n=6, firms produce same good, x. Fixed cost for both firms is $15 and variable cost x^2. Demand for x = 240 – P, P is market price of X.

  1. Find the profit max output for a single firm as a function of P
  2. Calculate aggregate supply and use it determine the equilibrium price P* in the market for x.
  3. At the equilibrium price P*, what is an individual firm’s profit?

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Expert Solution

Rahul Sunny answered 2 years ago
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