Virginia Tech ECON ECON 5005 As in the previous problem, suppose Yoda’s cost function is C(Q) = 9+Q2 , and further suppose that Yoda is one of many identical private tutors in a
9+Q2 , and further suppose that Yoda is one of many identical private tutors in a competitive industry. Suppose the market demand curve for private lessons is Qd=600-P.
a. Find the individual seller’s supply curve.
b. In long-run equilibrium, what must each seller’s profits be? Find the long-run equilibrium price that satisfies this profit condition. (Hint: your answer in question 1, part d may be useful here.)
c. In long-run equilibrium, what is the market quantity, and what is the quantity supplied by an individual seller?
d. How many sellers will be in the market in long-run equilibrium? Given this number and your answer from part (a), find the market supply curve
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