Consider the market for gasoline, which is perfectly competitive. Each firm in the industry produces gasoline with the same technology and has cost function:

c(q) = 200 + 5q + 1/2 q². Each consumer has demand for gasoline given by:

g(p) = 10 - 0.1p. where p is the price of gasoline. All consumers have identical demand functions.

a) Find the short-run supply curve for a typical firm.

b) Suppose there are 10 firms in the market. Find the short-run aggregate supply curve.

c) Suppose there are 100 consumers in the market. Find the aggregate demand curve.

d) What is the short-run equilibrium when there are 10 firms and 100 consumers?

e) In the short-run equilibrium, how much profit is earned by each firm?

f) What is the long-run equilibrium price in this market? How many firms will be in the

market in the long run?