Consider a competitive industry where all firms have identical cost functionsC(y) =y2+1 ify >0 andC(0) = 0. Suppose that the demand curve for this industry is given byD(p) = 52p.

1. (a)Find the individual supply curve of each firm.
2. (b)Suppose there arenfirms in the industry. Find the industry supply curve.
3. (c)Find the price and quantity corresponding to a short-run market equilibrium assuming there arenfirms in the market.
4. (d)Use the zero-profit condition to find the price in the long-run equilibrium.
5. (e)Find the number of firms and equilibrium quantity in the long-run.