As in the previous problem, suppose Yoda's cost function is C(Q) = 9+Q2 , and further suppose that Yoda is one of many identical private tutors in a competitive industry. Suppose the market demand curve for private lessons is Qd=600-P.

a. Find the individual seller's supply curve.

b. In long-run equilibrium, what must each seller's profits be? Find the long-run equilibrium price that satisfies this profit condition. (Hint: your answer in question 1, part d may be useful here.)

c. In long-run equilibrium, what is the market quantity, and what is the quantity supplied by an individual seller?

d. How many sellers will be in the market in long-run equilibrium? Given this number and your answer from part (a), find the market supply curve

e. Suppose demand increases to Qd'=1200-P. Find the new short-run equilibrium price and market quantity.

f. In the new short-run equilibrium, find the individual seller's quantity supplied and profit.

g. Given the profit result you found in part (f), will sellers enter or exit the market in the long run? Find the new long-run equilibrium price, market quantity, and quantity supplied by the individual seller.

h. How many sellers will be in the market in the new long-run equilibrium? Given this number and your answer from part (a), find the new market supply curve.