Problem 6. Consider a competitiVe industry in the long run with many rms, all of which have identical costs functions (:02) = y2 + 1 when y > 0, and c(0) = 0 when y = 0. The marginal cost of each firm is MC(y) = 2y. Suppose that the initial market demand is D(p) = 52 p. Note: The number of rms is always an integer. The output of a rm does not have to be an integer. (Q) What will be the equilibrium output of the whole industry? (h) Suppose the demand curVe shifts to D(p) = 52.5 p. What is the new equilibrium number of firms in the industry? (i) What will be the equilibrium price under the new demand? (i) What will be the equilibrium output of each firm? (9) What will be the equilibrium output of the whole industry? (k) Now suppose the demand curve shifts to D(p) = 53 p. What is the new equilibrium number of firms in the industry? (I) What will be the equilibrium price under the new demand? (m) What will be the equilibrium output of each firm? (n) What will be the equilibrium output of the whole industry