The orange growing industry in Florida is perfectly competitive, and each producer has a long-run marginal cost curve given by MC(Q) = 20 + 2Q. The corresponding long-run average cost function is given by AC(Q) = 20 + Q + 144/Q. The market demand curve is D(P) = 2488 +2P.
a) What is the long-run equilibrium price in this industry, and at this price, how much would an individual firm produce?
b) How many active producers are in the orange growing industry in a long-run competitive?