1) Suppose you are given the following information about a particular industry: QP= 120 - P C(q) = 50 + 0.572 Market demand Firm total cost function Assume that all firms are identical, and that the market is characterized by perfect competition. Presently, there are nine firms in the industry. a. (2) Find the equilibrium price, the equilibrium quantity, the output supplied by the firm, the profit of each firm? b. (2) Would you expect to see entry into or exit from the industry in the long run? Explain. What effect will entry or exit have on market equilibrium? c. (2) In the long-run equilibrium, how much does each firm produce? How many firms are in the market? d. (2) In the short-run, suppose that a tax of $1 is assessed for every unit of output and is imposed on only one firm in the industry. Find the new profit maximizing output for the firm. e. (2) Now suppose that the tax of $1 is imposed on every firm in the industry. Find the new profit maximizing output for the firm. Is the effect of the tax on the firm's output larger when the tax is imposed only on one firm or when the tax is imposed on every firm? Explain. 1) Suppose you are given the following information about a particular industry: QP= 120 - P C(q) = 50 + 0.572 Market demand Firm total cost function Assume that all firms are identical, and that the market is characterized by perfect competition. Presently, there are nine firms in the industry. a. (2) Find the equilibrium price, the equilibrium quantity, the output supplied by the firm, the profit of each firm? b. (2) Would you expect to see entry into or exit from the industry in the long run? Explain. What effect will entry or exit have on market equilibrium? c. (2) In the long-run equilibrium, how much does each firm produce? How many firms are in the market? d. (2) In the short-run, suppose that a tax of $1 is assessed for every unit of output and is imposed on only one firm in the industry. Find the new profit maximizing output for the firm. e. (2) Now suppose that the tax of $1 is imposed on every firm in the industry. Find the new profit maximizing output for the firm. Is the effect of the tax on the firm's output larger when the tax is imposed only on one firm or when the tax is imposed on every firm? Explain