The widget market is competitive. The market demand is P= 30-0.05Q, while the market for supply is Q= -100+20P. The firms are identical, and a typical firm is known to have an AVCi = 5+0.5Qi with an overhead of 200.
a) Derive the competitive equilibrium for the market.
b) Solve for the optimal output level for a typical firm.
c) Solve for the profit level of a typical firm.