1.Let total cost for each firm in perfectly competitive industry be T C(q) = 100 +q 2 for positive q and T C(q) = 0 for q = 0, and demand be QD = 10000100P. Answer the following questions.

a)What will be industry output in long-run equilibrium?

b)Suppose that demand is QD = 5000 50P. What is the industry output in long-run equilibrium? How many firms will be there in the industry?

c)Suppose that demand now shifts to be QD = 6000 50P but that it is not possible to manufacture more (industry) output than the long-run equilibrium output in part (b). What is the new equilibrium price of output? How much profit does manufacturer if each sets its output optimally given the new price and constraints in this setup?

d)In the long-run, how many new firms will enter in this industry when demand shifts as in part (c)?