1. Consider a market where each existing firm and potential entrants have the identical long-run cost function c(q) = 10q3-5q2+20q. Market demand function is Q = 39000 - 2000p. (a) In the long-run, what is the equilibrium market price, market output, number of firms and output per firm? (b) Suppose a technological innovation reduces each firm's cost function to c(q) = 10q -6q2 +20q. Compare the new long-run equilibrium with that found in part (a)