Question

Assume that the cost function for the ith firm in an industry is given by
Ci = 0.25$q^2_i$ + 2qi + 5, i = 1, 2, ..., 150,
where Ci and qi are cost and output for the ith firm, respectively.
Let the aggregate inverse demand function be P = 10-0.01Q, where P is the unit price and Q is the aggregate output.
Assuming perfect competition, the equilibrium quantity is _____ (in integer).

Answer 1

The correct answer is: 4 to 4 OR 600 to 600 (approx.)