In the perfectly competitive market for magic crystals, each firm and potential entrant has a long-run average cost curve AC(Q) = 10 8Q + 4Q 2 , where Q is in thousands of units per year. Market demand is given by D(P) = 960 10P.

(a) In a long-run equilibrium, how many units will each firm produce?

(b) In a long-run equilibrium, what is the profit of each firm? Why?

(c) What is the market equilibrium price in the long-run? (d) (10 points) What is the equilibrium number of firms in the long-run?