Final answer:
The industry supply curve is P = 5000 + 1000Q. The equilibrium price is $140 and the equilibrium quantity is 6,000. A firm operating in this market with a marginal cost function of MC = 130Q will produce 4.17 units of output.
Step-by-step explanation:
To find the industry supply curve, we can add up the supply curves of all individual firms. Given that each firm has a supply curve of P = 50 + 10Q, the industry supply curve would be the sum of all these individual supply curves. In this case, since there are 100 firms, the industry supply curve can be expressed as P = 5000 + 1000Q.
To determine the equilibrium price and quantity for this market, we need to find the point where the market demand curve and the industry supply curve intersect. By setting the demand curve P = 200 - 0.9Q equal to the supply curve P = 5000 + 1000Q, we can solve for the equilibrium quantity Q and substitute it back into either equation to find the equilibrium price P. Solving these equations, we find that the equilibrium price is $140 and the equilibrium quantity is 6,000.
To determine the number of units of output produced by a firm operating in this market with a marginal cost function of MC = 130Q, we can set MC equal to the industry supply curve and solve for Q. Rearranging the equation, we have 130Q = 5000 + 1000Q. Simplifying, we find that the firm will produce 4.17 units of output.