Suppose that steel is produced by a competitive industry.Assume that each firm in the industry has the following cost function:

TC = 25+q²

a.The long run supply curve for this industry is perfectly elastic assuming free entry.At what price is long run supply perfectly elastic?

b.How much will each firm produce in the long run?

c.Suppose the government provides a subsidy of $9 dollars to each firm in the industry.The new long run supply is perfectly elastic at what price?

d.How much will each firm produce in the long run after the introduction of the subsidy.