Consider a competitive industry in the long run with many firms, all of which have identical costs functions c(y)=y2+1 when y > 0, and c(0)=0 when y =0. The marginal cost of each firm is MC(y)=2y

(h) Suppose the demand curve shifts to D(p)= 52. 5-p. What is the new equilibrium number of firms in the industry?

(i) What will be the equilibrium price under the new demand?

(j) What will be the equilibrium output of each firm?

(g) What will be the equilibrium output of the whole industry?

(k) Now suppose the demand curve shifts to D(p)= 53-p. What is the new equilibrium number of firms in the industry?

(l) What will be the equilibrium price under the new demand? (m) What will be the equilibrium output of each firm?

(n) What will be the equilibrium output of the whole industry?