4. Suppose that a rm in a perfectly competitive industry faces the following short-run cost function: TC = 0.2q3 8oz + 130g. a. What will be the long-run equilibrium price and per rm quantity? (2 points) b. The market demand is given by on = 8350 5P. How many total rms will there be at the long-run equilibrium? (1 point) c. If a negative demand shock causes the market demand to decrease to QB = 9240 8P, how will the individual rms and the constant cost industry in general respond to the negative demand shock in the short run and the long run? (3points) d. How would the industry response be different if it were a decreasing cost industry? (4pts)