Problem
The wood-pallet market contains many identical firms, each with the short-run total cost function STC(Q) = 400 + 5Q + Q2 , where Q is the firm's annual output (and all of the firm's $400 fixed cost is sunk). The corresponding marginal cost function is SMC(Q) = 5 +2Q. The market demand curve for this industry is D(P) = 262.5 - P/2, where P is the market price. Each firm in the industry is currently earning zero economic profit. How many firms are in this industry, and what is the market equilibrium price?
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.