An industry has many identical firms with the following cost curve: TC = q2 + 10q + 2,500 Market demand is:Q = 4000 - 10P

a. Find the long-run equilibrium price, quantity, and number of firms.

b. Find the equation of the short-run supply curve based on the number of firms in long-run equilibrium. (Round number of firms to the nearest whole number if necessary.)

c. Now suppose that demand decreases to Q = 3,000 - 10P. Calculate the short-run and long-run prices and quantities and number of firms, and EXPLAIN what will happen in the short and long run.

d. Carefully graph your results. You should have a graph for the industry, a graph for the firm, and you should show all short and long-run points that you found in a, b, and c.

Now suppose that instead of the change in demand, fixed costs decrease to 1,600. Find the new short- and long-run equilibria, graph your results, and EXPLAIN how the industry will adjust.