An industry currently has 100 firms, all of which have fixed costs of $16 and average variable cost as follows:

Quantity Average Variable Cost ($)

1 1

2 2

3 3

4 4

5 5

6 6

(a)Compute marginal cost and average total cost

(b)The price is currently $10. What is the total quantity supplied in the market?

(c)As this market makes the transition to its long-run equilibrium, will the price rise or fall? Will the quantity demanded rise or fall? Will the quantity supplied by each firm rise or fall?

(d)Graph the long-run supply curve for this market.