*5 The EU market demand schedule for pop CDs is: Price Quantity demanded (euros per CD) (CDs per week) 3.65 500,000 4.40 475,000 5.20 450,000 6.00 425,000 6.80 400,000 7.60 375,000 8.40 350,000 9.20 325,000 10.00 300,000 10.80 275,000 11.60 250,000 11.40 225,000 13.20 200,000 14.00 175,000 The market is perfectly competitive and each firm has the same cost structure described by the following table: Average Average Marginal variable total Output cost cost cost (CDs per week) (euros per CD) 150 6.00 8.80 15.47 200 4.60 7.80 11.80 250 7.00 7.00 11.00 300 7.65 7.10 10.43 350 8.40 7.20 10.06 400 10.00 7.50 10.00 450 12.40 8.00 10.22 500 20.70 9.00 11.00 There are 1,000 firms in the industry. a What is the market price? b What is the industry’s output? c What is the output produced by each firm? d What is the economic profit made by each firm? e Do firms enter or exit the industry? f What is the number of firms in the long run?