Each firm in the competitive wireless phone charger industry has long-run and short-run total cost functions given by: () = 20 ^1/2+ 5^3/2, () = 32 + 4 + 2²The inverse demand function for this product is: = 132 2

(a) Plot long-run and short-run average costs, along with short-run average variable cost, on a clearly labeled diagram. Explain the relationship between () and ().

(b) Determine the long-run market price, quantity, and number of firms in this market. (Explain your assumptions.)

(c) Now suppose a study is released revealing that exposure to the radiation from a wireless charger may be a health hazard. Demand plummets to: = 100 2 Assume that the number of firms is fixed in the short run. Determine the short run equilibrium, including the industry supply curve, the market price and quantity, and each firm's profit. Explain how many firms you would expect to enter or exit in the long run, if this new demand curve persists.