Suppose all firms in an industry have the same supply curve given by Si(p) = p/4.

(a) Plot and label the industry supply generated when there are 1, 2, 3, 4 firms operating in the industry.

(b) If all firms had a cost structure such that if the price was below 3 NOK, they would be losing money, what would be the equilibrium price, output and number of firms in the industry if the market demand was equal to D(p) = 2.

(c) What if the identical conditions as above held except that the market demand was equal to D(p) = 6 p? Compute the equilibrium price, output and number of firms in the industry.