A perfectly competitive industry has a large number of potential entrants. Each firm has an identical cost structure such that long-run average cost is minimized at an output of 20 units (qi = 20). The minimum average cost is $10 per unit. Total market demand is given by: Q = 1,500 SOP The longrun industry supply curve is a horizontal line at P = . Given your answer to the previous part of the question, the longrun industry equilibrium price is P = |:] , which yields a total industry output of Q = :l . This implies that there are |:] firms, each earning a profit of C]. Suppose the short-run total cost function associated with each firm's long-run equilibrium output is given by: C(q) = 0.5g2 10q + 200 The shortrun average cost function for one firm is SRAC = V and the shortrun marginal cost function for one firm is MC = V . Shortrun average cost reaches a minimum at an output level of q; = . The short-run supply function for each firm can be written as q = V and short-run supply curve for the entire industry can be written as Q = " - Suppose now that the market demand function shifts upward to Q = 2,000 50P. Given this new market demand function, the industry equilibrium price, in the very short run when firms cannot change their outputs, is P = |:] , which results in each firm earning a profit of |:]. Now suppose, in the short run, firms can adjust their output according to the short-run supply function you already calculated. Given this new market demand function, the industry equilibrium price in the shortrun , becomes P = C] , total industry output becomes Q = , which results in each firm producing q,- = |:] and earning a profit of V . Given this new market demand function, the industry equilibrium price in the long-run , becomes P = |:] , total industry output becomes Q = , which now results in each firms, each producing q; = |:| and earning a prot of