Problem
The global propylene industry is perfectly competitive, and each producer has the long-run marginal cost function MC(Q) = 40 - 12Q + Q2 . The corresponding long-run average cost function is AC(Q) = 40 6Q + Q2 /3. The market demand curve for propylene is D(P) = 2200 - 100P. What is the long-run equilibrium price in this industry, and at this price, how much would an individual firm produce? How many active producers are in the propylene market in a long-run competitive equilibrium?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.