1a- Assume that the market for flip-flop shoes is perfectly competitive.All firms have the same cost function: C = 48 + 3q².The market demand curve for flip-flops is Q^D= 600 - 10P.

The price of flip-flops is currently $36.Calculate how manyflip-flops each firm will produce, thetotal quantity tradedin the market, thenumber of firmsin the industry, and theprofitearned by each firm.

Enter these values in the space provided:.Use this formatq=___, Q=___, N=___, Profit = ______.

Calculate the equation for the industry supply curve and enter it here.

PART B-

Assume that the market for flip-flop shoes is perfectly competitive.All firms have the same cost function: C = 48 + 3q².The market demand curve for flip-flops is Q^D= 600 - 10P

Do you expect to see firms enter or exit this industry in the long run? Why?Be sure to use the ideas ofeconomicprofit and opportunity cost in your explanation: why would you switch into/out of this industry?Briefly describe thekey feature of long-run equilibriumin a competitive market(Hint: the story continues until...).

PART C-Assume that the market for flip-flop shoes is perfectly competitive.All firms have the same cost function: C = 48 + 3q².The market demand curve for flip-flops is Q^D= 600 - 10P

Calculate the long-run equilibrium for this industry: how mucheach firm will produce, the finalmarket price, whatprofitseach firm will earn, thetotal quantitytraded in the market, and the finalnumber of firms.Type these answers in the space provided,using the same format as before:q=___, P=____, Q=____, N=___,Profit=_____.

Calculate the equation for thenew industry supply curve, and type it in the space below.

In your written work,draw theusual "firm and market" graphof the short run equilibrium from part a), and the long run equilibrium from part c).Your graph must include MC, ATC, MR, and as many Supply and Demand curves as necessary.Label all the intersections that correspond to the values you calculated above.Label the area that shows the firm's short-run profit or loss.