The market for sweet potatoes consists of 1,200 identical firms. The market demand curve is given by Qd=20.4-2P. Each firm has a short-run total cost curve of STC=6q + 1000q2 where q is the number of bushels of sweet potatoes per month in thousands. Find the equilibrium price and quantity in this market.
P = $9.23 and Q = 1.94
P = $3.60 and Q = 720
P= $6 and Q=2,000
P = $24 and Q = 1,200