Imagine there is a perfectly competitive market the market...

Imagine there is a perfectly competitive market. The market demand and supply are reflected in the following equations: Qd = 78 - 3P Qs = 28 + 2P Determine the price for the firm that wants to enter the market. Round your answer to the nearest whole number if necessary.

Transcript

00:01 Hello students, we are given a question here.

00:02 Consider a perfectly competitive market with the similar firms.

00:06 Assume the total demand in the market is mwtp is given as 60 minus 5k.

00:12 We are given that each firm's total cost is tc.

00:17 We are given the function of tc and the marginal cost as well.

00:21 We need to find the how that what is a long run market price in this market.

00:26 So we are supposed to know that here.

00:29 Since in line, long run profit is zero we can say that since in a long run in a long run student's profit is a zero so basically we can say that here let p star be the long run equilibrium price let p star be the long run market price okay students market equilibrium price so basically we can say that here the p star have to be equal to obviously p star have to be equal to average total cost average total cost okay students and or it is also equal to the marginal cost now as we are supposed to note that here we are given first of all the total cost in this equation total cost is q cube minus two q square q q minus 2q square, okay students, then q minus 2q square plus 2q.

01:35 So we need to find the average total cost.

01:38 So atc is equal to total cost divided by the quantity.

01:42 It means q.

01:43 So basically q q minus 2q square plus 2q then divided by q, which comes out as equals to q square minus 2q plus 2.

01:54 Okay, students.

01:55 Now as we are supposed to know that here, we are given as well the marginal cost function...