Consider a competitive industry composed of J=80 identical firms in the short run. The price of the output is p > 0 and the short-run profit function is ()=2+235.

a) Find the short-run supply function for firm j i.e. .

b) Find the short-run market supply function i.e. .

c) The market demand is =3200/p. Solve for the short-run equilibrium price, quantity produced by each firm and profit for each firm.

d) Solve for the long-run equilibrium price and number of firms.

e) Comment on the change in the number of firms and firm profits from the short run to the long run

f) What is the difference between the short run and long run quantity sold on the market?