Competition and the Invisible Hand Let's take a look at Invisible Hand Property 2 in action using a mathematical example. Suppose an industry is characterized by the following equations. We're going to assume that all individual firms are identical to make this problem a little simpler. Demand: Q = 100-2P Individual firm's supply: qs 0.5 +0.1P Market supply with n firms: Qs nxqs = 0.5n+ 0.1nP Individual firm's average cost: AC = 5qs-5+242 a. Suppose 24 firms are in this industry. What is the equation for market supply? Qs= What are the equilibrium price and quantity? Equilibrium price = $ Equilibrium quantity =