For the rest of the problem, assume that we are in the long run with free entry in the market. (a) What will be the long-run equilibrium price in the market? (p* ) (b) At that price, how much will each firm produce? (q*) (c) What is the total number of firms in the market in the long run? (N) If the manager of Kendall Square, Inc works hard, she can manage to transform the long- run cost function you derived in Q.3 by cutting Kendall Square Inc's variable costs in half. That is, she can halve the part of the long-run cost function unrelated to her fixed wage of $54. Suppose that the rest of the market doesn't change: the other firms can only hire mediocre managers who cannot cut the cost functions and so the long-run market price remains fixed at the same level you calculated in Q.5.b (a) What is the new optimal long-run production level for Kendall Square, Inc? (q") (b) What are the new long-run profits for Kendall Square, Inc? ( Instead of working hard, Kendall Square Inc's manager can shirk and not improve costs. To incentivize her hard work, Kendall Square Inc's shareholders want to give the manager a bonus if they see that variable costs are cut by half. What is the maximum bonus that shareholders would be willing to give