Question

Consider the tourism industry in a large city. The market for tours is perfectly competitive in the city. Firms have no fixed costs, and all firms have the same cost structure. The daily cost of providing tours for any given firm is listed in the table below.

Cost of providing tours

Total Tours	Cost of Providing Tours
1	$45
2	$85
3	$120
4	$150
5	$175
6	$195
7	$210
8	$230
9	$255
10	$285
11	$320
12	$360

What we know about the market demand for tours is given in the table below.

Market demand for tours

Price	Quantity Demanded
$40	0
$35	35
$30	70
$25	105
$20	140
$15	175

1.A law passed by the city requires the price of tours to be in integers (whole numbers), and people cannot buy fractions of a tour. In a long-run equilibrium in the tourism market, there would be ?

2.tour companies providing tours, the equilibrium price will be $ ? ,

3.and each tour company will provide ? tours daily.

Answer 1