1) Suppose you are given the following information about a particular industry: Q\" = 120 - P Market demand C(q) = 50 + {1.5q2 Firm total cost function Assume that all rms are identical, and that the market is characterized by perfect competition. Presently, there are nine rms in the industry. a. (2) Find the equilibrium price, the equilibrium quantity, the output supplied by the rm, the profit of each firm? b. (2) Would you expect to see entr}r into or exit from the industry in the long run? Explain. What e'eet will entry or exit have on market equilibrium? c. (2) In the long-run equilibrium, how much does each rm produce? Howr man).r rms are in the market? (1. (2} In the short-run, suppose that a tax of $1 rs assessed for every unit of output and is imposed on only one rm tn the industry. Find the new prot maximizing output for the rm. e. (2} Now suppose that the tax of$l is imposed on ever},r firm in the industry Find the new prot maximizing output for the rm. Is the effect of the tax on the rm 5 output larger when the tax is imposed only on one rm or when the tax is imposed on every rm? Explain