Question : 1) The latest craze to hit America Frozen Tofu. The : 860
1) The latest craze to hit America is Frozen Tofu. The market demand curve for frozen tofu is given by
Q = 200 - 2p
Frozen Tofu is produced by a perfectly competitive industry. All firms are identical. The total cost function for producing frozen Tofu (in the short run) is
SRTC(q) = 10 + 2.5 q2,
In the short run, there are 15 firms in the industry.
a) What is the short run market equilibrium price of frozen tofu?
b) What is the quantity produced my any individual firm in this equilibrium?
c) What is each firm's individual profit?
d) What is the consumers' surplus at the equilibrium price?
e) Draw a diagram or diagrams to illustrate this short run equilibrium.