Suppose in a perfectly competitive industry, the typical firm has a long run total cost curve expressed

by:

TC = q3-18q2+ 128q, where q is the firm's output.(15 marks)

(Also can their be graphs showing for each firm and industry)

1. a)What output will a firm produce in the long run?
2. b)What is the firm's long run per unit cost?
3. c)Is the firm operating at optimal size? What is it? Why?

d) Assuming free entry to, and exit from the industry. If the industry market demand curve is given by:

Px= 1397 -5Qx

What will be the long run equilibrium, specifically?

e) Industry price

f) Industry output

g) Number of firms