Each Firm in a Perfectly Competitive Market Has Long Run $A C ( q ) =$

Multiple Choice

Each firm in a perfectly competitive market has long run average cost represented as $A C ( q ) =$ $100 q - 10 + 100 / q$ . Long run marginal cost is $M C = 200 q - 10$ . The market demand is $Q ^ { d } = 2150 - 5 P$ . Find the long run equilibrium output per firm, $q ^ { * }$ , the long run equilibrium price, $P ^ { * }$ , and the number of firms in the industry, $n ^ { * }$ .

A) $q ^ { * } = 1 ; P ^ { * } = 190 ; n ^ { * } = 1200$
B) $q ^ { * } = 2 ; P ^ { * } = 240 ; n ^ { * } = 1200$
C) $q ^ { * } = 50 ; P ^ { * } = 15 ; n ^ { * } = 200$
D) $q ^ { * } = 100 ; P ^ { * } = 9991 ; n ^ { * } = 500$