843. A rm in a perfectly competitive constant cost industry has total costs in the short run given by: TC = 0.5q2 + 2q + 128 where q is output per day and TC is the total cost per day in dollars. The lm has xed costs of $96 (already included in the TC equation above). The TC equation generates minimum average costs of $18 (per unit) at q = 16. You are also told that this size rm generates minimum long run average costs (that is, minimum LRAC occurs at q = 16. with min LRAC = $18). Questions 8 through 13 concern this rm and this industry. 8. In the short run, this firm's shut down price is: (A) $0 (B) $6 (C) $8 (D) $10 (E) $12 (F) $16 (G) $18 (H) $24 (1) $32 (J) $36 9. You are told that in the short run there are 200 rms, including this one, in the industry, all with the same cost curves described above. Suppose that the demand curve facing the industry is given by the equation P = 38 - .004Q where P is the price per unit and Q is the number of units demanded per day. The equilibrium price in the short run is: (A) $10 (B) $16 (C) $18 (D) $20 (E) $22 (F) $24 (G) $26 (H) $30 (1) $32 (J) $34 10. Continuing the problem begun in question 8, the individual rm in the short run will earn profits of: (A) $0 (B) $26 (C) $32 (D) $48 (E) $52 (F) $68 (G) $72 (H) $84 (I) $90 (J) none of the above 11. Given the demand curve described in question 9, suppose that we are now in the long run. The total output of the industry per day in the long run (to the nearest integer) is: A) 0 (B) 2000 (C) 3000 (D) 4000 (E) 5000 (F) 6000 (G) 7000 (H) 8000 (I) 9600 (J) none of the above 12. Given the demand curve described in question 9, suppose that we are still in the long run. The increase in the number of rms in the industry (moving from short-run to long-run equilibrium and rounding to the nearest integer) is: A) 0 (B) 20 (C) 95 (D) 113 (E) 125 (F) 147 (G) 156 (H) 166 (I) 192 (J) none of the above 13. Now, in the very long run, there is a technological change that reduces the long run minimum average cost of the typical business rm to $10 at q = 14. Now how many rms will there be in the long run? A) 0 (B) 200 (C) 300 (D) 357 (E) 414 (F) 500 (G) 600 (H) 615 (I) 643 (.0 none of the above