Final answer:
The equilibrium quantity of output for each firm in a perfectly competitive semiconductor market, where the equilibrium price is $200 and SRMC = 4Q, is 50 units. Therefore, for 100 identical firms, the total equilibrium market output is 5000 units.
Step-by-step explanation:
In a competitive market, firms make their profit-maximizing decisions based on the principle where marginal revenue (MR) equals marginal cost (MC). In the case of the semiconductor market with 100 identical firms, each firm's short-run marginal cost curve is given as SRMC = 4Q. The equilibrium price is set at $200, which represents both the marginal revenue and price, as they are the same for a perfectly competitive firm. To find the equilibrium quantity of output for an individual firm, we set MR = MC, which translates to $200 = 4Q. Solving for Q gives us the equilibrium quantity of output as Q = $200 / 4, which is 50 units per firm.
As there are 100 identical firms in the market, the total equilibrium quantity of output in the market would be 100 firms multiplied by 50 units, equaling 5000 units. This scenario illustrates the short-run outcomes for perfectly competitive firms, where they produce the output level at which price equals marginal cost (P = MR = MC).