Each firm in a competitive market has a cost function of C = q + q² + q³. The market has an unlimited number of potential firms. The market demand func- tion is Q = 24 - p. Determine the long-run equi- librium price, quantity per firm, market quantity, and number of firms. How do these values change if a tax of $1 per unit is collected from each firm? (Hint: See Solved Problem 8.4.) M
