The market demand for some good supplied by a large number of perfectly competitive rms is given by Q = 10p1. All rms in the industry are 1 symmetric and have the same marginal cost function mc (q) = 0:5q and pay $1 of avoidable xed costs every period. (i). Find the long run equilibrium in this market. Calculate equilibrium price, output per rm, industry output and the total number of rms. (ii). Calculate the short run and the long run industry supply functions