Consider a market for a portable hard drive. Suppose that there are 50 firms producing the identicalportable hard drive, and so the market can be considered to be competitive. The market demand forthe portable hard drive is given by QD = 1800 – 10P, where Qp is the market demand, and P is theprice. Each firm's cost function is given by C(q;) = 8+ q? /2, where q; denotes the quantity producedby firm i. Answer the following questions to find the competitive equilibrium price and quantity.(1) (10 points) What is the market supply, Qs?(2) (10 points) What is the market equilibrium price and quantity?(3) (10 points) What is the equilibrium profit for each firm?

Given, Qd = 1800 - 10P C(q) = 8+Q2i/2

Answered: Consider a market for a portable hard…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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