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A perfectly competitive industry consists of many identical firms, each with a long-run total cost of...

A perfectly competitive industry consists of many identical firms, each with a long-run total cost of LTC = 800Q – 10Q^2 + 0.1Q^3.

a. In long-run equilibrium, how much will each firm produce?

b. What is the long-run equilibrium price?

c. The industry's demand curve is QD = 40,000 – 70P. How many units do consumers buy in long-run equilibrium? How many firms are in the industry?

d. Suppose the industry's demand curve rises to QD = 40,600 – 70P. How many new firms will enter this constant-cost industry in the long run?

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