2.All sneaker firms have the same cost curves.

Long-run average cost curve:AC = -150 + 5q + 2,025/q

Long-run total cost curve:TC= 2,025 - 150q + 5q2

Long-run marginal cost curve:MC = -150 + 10q

Market demand for coats:QD= 43,998 - 500P

q = number of coats sold by firm per hourP = price per coat

2a. Calculate the long-run equilibrium price and how many sneakers each individual owner will sell per hour.

2b. Calculate how many firms there are?

2c. If fixed costs increase by 500, calculate how many sneakers each firm will now produce per hour.