Kites are homogeneous products manufactured by identical firms. Each firm's short-run average total cost and marginal cost of production are given by: ATC = q + 100/q, MC = 2q.

a.In long-run equilibrium, how many kites will each firm produce? Show your work.

b.Suppose that the demand for kites is given by Q_D= 8,000 - 50P. How many kites will be sold? How many firms are there in the kite industry?

c.Now suppose that because of the COVID-19 pandemic, people want to spend more time outdoors, so the demand for kites goes up to Q_D= 9,000 - 50P. In the short run, when the number of firms in the industry is fixed, what will the new P, Q and q be in this market? How much profit will each kitemaker earn?

d.In the long run, what will the price of kites be? How many new firms will enter the kite-making industry? (Note: presume the demand is the same is in part c and doesn't fall if/when the pandemic ends)