Question 3: In the market for running shoes, all the firms face a similar demand curve and have similar cost curves to those of Smart in problem 2. a. What happens to the number of firms producing running shoes in the long run? Answer: b. What happens to the price of running shoes in the long run? Answer: c. What happens to the quantity of running shoes produced by Smart in the long run? Answer: d. What happens to the quantity of running shoes in the entire market in the long run? Answer: e. Does Smart shoes have excess capacity in the long run? Answer: f. Why, if Smart shoes has excess capacity in the long run, doesn't the firm decrease its capacity? Answer: g. What is the relationship between Smart Shoes' price and marginal cost? Answer: