In a monopoly,
MC = MR
TR = P*Q = 10Q - Q2
MR = d(TR)/dQ = 10 - 2Q
MC = 2Q already given.
So,
2Q = 10Q - Q2
Q2 = 8Q
Q* = 8
P* = 10(8) - 82 = 80-64 = 16
MINIMUM of LAC is output of each firm.
LAC = 5/Q + Q
d(LAC)/dQ = -5/Q2 +1 = 0
or, 1 = 5/Q2
or,Q2 = 5
or, Q = 2.236
So, number of firms (n) = 8/2.236 = 3.577 which is equal to 3.
ANSWERS IN ORDER
3
2.236
16
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