microeconomics

Part A (8 points) Each firm in a perfectly competitive industry has an identical cost structure such that long-run average cost is minimized at an output of 20 units. The minimum average cost is $10 per unit and the industry is constant cost industry. The total market demand is given by (" = 1,500-50P. What is the long-run equilibrium price? The total industry output? The output of each firm? Number of firms? And the profits of each firm? Find the industry's long-run supply schedule. Part B (8 points) Suppose that we have a perfectly competitive industry that exhibits decreasing costs. Suppose initially we are at the LR equilibrium. Consider a scenario that a positive demand shock hits the market (market demand increases). Show the adjustment process on a diagram that contains both individual firm and industry analysis. What happens to the equilibrium price, output (both individual firm and industry ) and the number of firms in the LR? Show the long run industry supply