If m represents her production of milk, x her consumption of cow feed, and y her consumption of hay, Lolita's technology can be summarized by the following production function: m = x+2y

1. The market Lolita is operating in is tightly controlled by Old MacDonald, who has started requiring firms (i.e.cows) to purchase a license before they are allowed to sell any output (i.e.milk). The price of a licence is F = 2. The input prices are px = py = 16. Assuming that all Holstein cows are using the same technology to produce milk, that milk-production on Old MacDonald's farm is the only business a Holstein cow can think of, that all Holstein cows act in order to maximize profits, and that market demand for milk can be written as D(p) = 16 - p, what is the long-run equilibrium number of firms in the market?