1. a) What is the shutdown point? What is the break-even point?
2. b) What is the short run equilibrium price in this market?
3. c) What amount of profit (or loss) is being made by each firm at the short-run equilibrium? Is this industry in long-run equilibrium at its present size?
4. d) What is the optimal number of firms in the long-run?

A perfectly competitive industry has 50 identical firms in the short run, each of which has the short-run cost curves listed in the following table. Output Atc Avc marginal cost 00 8 56.8 40.8 16 9 52.2 38.0 8 10 47.8 35.0 12 11 44.5 32.9 16 12 42.2 31.5 20 13 40.5 30.6 24 14 39.3 30.1 28 15 38.5 30.0 32 16 38.1 30.1 36 17 38 30.5 40 18 38.1 31 The industry demand is given in the next table Price 14 18 22 26 30 34 38 Quantity demanded 1900 1680 1460 1240 1020 800 680 460 42