Firms in the sandbox industry have the long-run cost curve
C(q)= F + 6q + 5q²
Where F is a positive constant.The sandbox industry has a market demand of p = 90 - 2q
a.Suppose F = 20.What is the competitive equilibrium price,quantity and number of firms?
b.Suppose F is actually an accreditation fee established by the sandbox sellers association.A firm that avoids this fee will not be able to operate in the industry,and is therefore mandatory.How does the equilibrium price and number of firms vary with F? You do not have to use calculus,but explain whether each increases or decreases with F.How does the profit of each firm vary with F?

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The Answer of Firms in the sandbox industry have the long-run cost curve
C(q)= F + 6q + 5q²
Where F is a positive constant.The sandbox industry has a market demand of p = 90 - 2q
a.Suppose F = 20.What is the competitive equilibrium price,quantity and number of firms?
b.Suppose F is actually an accreditation fee established by the sandbox sellers association.A firm that avoids this fee will not be able to operate in the industry,and is therefore mandatory.How does the equilibrium price and number of firms vary with F? You do not have to use calculus,but explain whether each increases or decreases with F.How does the profit of each firm vary with F?

Firms in the Sandbox Industry Have the Long-Run Cost Curve