MicroEconomic theory

. Competitive Equilibrium Consider an industry in which all rms have the same cost function, 2 q = 722 and all behave as price takers and the market demand is given by, (a) (b) (C) (d) (6) qd = 6500 10013 Find the short-run supply curve of a single rm. Let n = 12 be the current number of rms in the industry. Find the shortrun market supply, the equilibrium price and quantity, the output supplied by each rm and the prots earned. Would you expect to see entry into or exit from the industry in the long run? Explain. What effect Will entry or exit have on market equilibrium? Find the longrun equilibrium price, output per rm, prots and number of rms. Show graphically What will be the effect of a shifts to the right of the market demand on: the shortrun equilibrium price and quantity versus the longrun equilibrium price and quantity. Will the number of rms remain the same in the longrun? Explain