1. Industry in the Short and Long Run Suppose an industry consists of 500 identical firms all producing a standardized product (widgets). The marginal cost function of each firm is given by Table 1. The fixed cost for each firm is $280. The data for the industry's aggregate demand curve are shown in Table 2. Table 1. MC for individual firms q (widgets) MC ($/widget) 1 13 00 5 4 5 7 10 15 22 10 31 11 40 12 50 13 63 14 78 15 100 Table 2. Market demand P ($/widget) Q (widgets) 5 4,720 10 4,360 15 4,000 20 3,640 25 3,280 30 2,915 35 2,560 40 2,200 45 1,840 50 1,480El. Determine the short-run supply curve for a typical rm in this industry (assume that every firm is a competitive prot-maximizer, and that if a rm is indifferent between producing two different quantities of output, it will choose the larger one). Determine the aggregate short-run supply curve for the industry. Find the short-run equilibrium price and quantity for this industry with all 500 identical firms open for business. What do you expect to happen in this industry in the long run? Please solve for the long-run equilibrium price, quantity (per firm), and number of firms in the market. Suppose the government decides that active industrial policy will promote growth in the economy. It introduces a permanent subsidy of $5 per unit, effective immediately. How will this affect the rm's marginal cost? The rm's average cost? Draw the industry' 5 short-run supply curve in the new situation. Find the new equilibrium price and quantity. If neither market demand nor the cost structure of the individual rms changes, what will be the long run equilibrium price, the quantity per rm, and the number of firms in the market if there is a subsidy