Imagine that you are a price-taking firm with the following total cost schedule and a fixed cost of 32.

Quantity: 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11

Total value cost: 20, 30, 36, 44, 54, 66, 80, 96, 114, 134

Now let the demand for this good be given by the following schedule and assume that this is a perfectly competitive market with identical firms and free entry/exit.

Price: 6, 8, 10, 12, 14, 16, 18, 20

Quantity Demanded: 500, 480, 460, 440, 420, 400, 380, 360

a. Assume that this market is in a long-run equilibrium.Show the long-run supply and the short-run supply (again, you may want to look in the textbook here) along with demand.Identify the equilibrium price and quantity.

b. How many firms will there be in this market?