Suppose a competitive industry currently has 100 firms, each of which has fixed costs of %16 and variable costs as follows:

Quantity	Price	TR	MR	VC	MC	TC	AVC	ATC	Profit
1	$10		-	1	-	$17		-
2	$10			4
3	$10			9
4	$10			16
5	$10			25
6	$10			36

a) Calculate the MR and MC if

i) price is $10 and quantity is 2

ii) price is $10 and quantity is 3

iii) price is $10 and quantity is 4

b) Calculate TR and TC if

i) price is $10 and quantity is 4

ii) price is $10 and quantity is 5

iii) price is $10 and quantity is 6

c) Calculate AVC and ATC if

i) price is $10 and quantity is 4

ii) price is $10 and quantity is 5

iii) price is $10 and quantity is 6

d) The equilibrium price is currently $10. How much does each firm produce? What is the total quantity supplied in the market?

e) In the long run, firms can enter and exit the market, and all entrant have the same costs as above. As this market makes the transition to its long-run equilibrium, will the price rise or fall? Will the quantity demanded rise or fall? Will the quantity supplied by each firm rise or fall? Explain.