Suppose that a market is served by many perfectly competitive small firms, all identical, each with cost function TC(q) = 11q + (q^2)/12 + 3, where q is firm level quantity. The market inverse demand is given by P(Q) = 36 (1/10)Q, where Q is the market quantity. In the short-run equilibrium, the equilibrium price is PSR = $13.

(a) Find the short-run equilibrium firm quantity, market quantity and number of firms. Will there be entry or exit?

(b) Find the long-run equilibrium firm quantity, market price, market quantity and number of firms.