Joe & John Well Drilling, LLC is a company that drills water wells and operates in a perfectly competitive market where there is a total of 10 firms (Including J&J). Basically, all the firms in this competitive market have drilling technologies (production and cost conditions) that are the same as J&J's. Suppose J&J's total cost function is given by:

C(q)=100+5q+0.0625q²

a. Calculate J&J's optimal output level and profits if the market inverse demand for feet P=80-0.05Q.

b. What do you predict will happen to the number of firms in this market over time?

c. If J&J is typical of the firms in this industry (same as the other 9), calculate the long-run equilibrium output, price and profit level that will ultimately prevail in this industry.