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Demand function for carrot in the country is Q = 1800 - P. There are 50 independent firms in the North who has

constant MC = 200 and capacity constrain q=10. There are 100 independent firms in the South who has constant MC = 100 and capacity constrain q=10. Zero transportation costs.

1. Find equilibrium: P, Q, Qn, Qs, Profit (north), Profit (South)

2. What happens in the long run if the number of firms in North and South can increase without limits. Find equilibrium: P, Q, Qn, Qs, Profit (north), Profit (South)

3. What will happen in the long run if all firms merge into one company? Find equilibrium: P, Q, Profit

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