You have decided to leave the hurried life of corporate American, and move to the state of Maine to follow your lifelong dream of lobstering. Congratulations! It turns out that lobstering is a perfectly competitive industry in the state of Maine, so there is there is free entry and exit in the long run. The total daily cost for an individual lobster boat is C()=8+22, where q is the daily lobster catch (measured in pounds of lobster). There are currently 200 lobster boats in operation. Daily lobster demand is ()=4162.

a. What is the price of lobster in the short run equilibrium?

b. How many pounds of lobster are caught (and eaten!) in the short-run equilibrium?

c. How much profit does each lobster boat earn?

d. Suppose that the daily lobster demand suddenly increases to ()=6242. In the short run, there are still only 200 lobster boats. What impact does the increase in demand have on the price per pound of lobster?

e. How much profit does each lobster boat now earn in the short-run equilibrium?

f. Given your answer to part e, what will be the number of lobster boats in the long run?