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9. Suppose we have a competitive industr}r with man}.7 rms, all of which have the cost function c{y] = y2 + 1 when 1; 3:-
9. Suppose we have a competitive industr}r with man}.7 rms, all of which have the cost function c{y] = y2 + 1 when 1; 3:- [l and (3(0) = 0. Suppose that. initially, aggregate demand is 13(1)) = 84 3). Note that the number of rms has to be an interger amount, but that prices and quantities do not have to he intergers. (a) Solve for an individual rm's suppl},r curve? If there are 71 rms in the market: what is the market supply curve? (b) In the longrun, what is the minimum price at which this product will be supplied? (c) 1What is the equilibrium number of rms in the market? (d) 1What is the equilibrium price? \"That is the output of every rm in the market? (e) What is the aggregate output of all firms in the market at the equilibrium? (f) Now, suppose that the market demand curve shifts to D(p) = 84.5-p. What will be the equilibrium number of firms be now? What will be the equilibrium price? What will be the output of each firm? What will be the profit of each firm in the market? (g) Now, suppose that the market demand curve shifts to D(p) = 85 - p. What will be the equilibrium number of firms? What will be the equilibrium price? What will be the output of each firm in the market? What will be the profit of each firm in the market
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