Suppose an industry is characterized by the equations in the following table. To make this problem a little bit simpler, we'll assume that all the individual firms in the industry are identical.

Demand = Individual firm's supply = 0.5 + 0.1 Market supply with firms = = 0.5+ 0.1 Individual firm's average cost = 5 5 + (24.2/ )

a)Suppose 24 firms are in this industry. What are the equilibrium price and quantity?

b)Suppose 24 firms are in this industry. Each firm in the industry is earning _________ in profit, which means that firms will either enter or exit (circle one) the industry over time.

c)Suppose 35 firms are in this industry. What are the equilibrium price and quantity?

d)Suppose 35 firms are in this industry. Each firm in the industry is earning _________ in profit, which means that firms will either enter / exit (circle one) the industry over time.

e)How many firms will be in this industry in the long run? (Hint: your answer here should be consistent with the answers from the previous questions)