Conigan Box Company produces cardboard boxes that are sold in bundles of 1000 boxes. The market is highly competitive, with boxes currently selling for $100 per thousand. Conigan's total and marginal cost curves are:

TC=3,000,000+0.001q2

MC=0.002q

where q is measured in thousand box bundles per year.

You have been asked by the box industry association to predict trends in the industry. Specifically, you have been asked to address the following:

1. If all of the other firms in the industry have the same TC cost functions as Conigan and this represents the best available technology, how much do you expect each firm to produce in the long run?

2. Do you expect the number of firms in the industry will increase, decrease or stay the same in the long run compared to now? Explain.

3. What are the implications of your answers to i. and ii. for prices in the industry? That is, do you expect prices to move in the industry and, if so, in what direction? Explain and provide numerical support for your answer.