Consider the market for ride-sharing services in NYC. All firms and potential entrants are identical. Each has an average cost curve AC(q) = 40 − q 0.01q², where q is the number of rides per week. Market demand is QD(p) = 25,000 − 1,000p, where Q is also in rides per week. Which of the following represents the free entry equilibrium quantity, price, and number of firms?
a) 5000 rides per week, $20 per ride, 50 firms
b) 7500 rides per week, $15 per ride, 75 firms
c) 10000 rides per week, $10 per ride, 100 firms
d) 12500 rides per week, $5 per ride, 125 firms