18.1 Competitive Equilibrium Consider a competitive industry with a large number of rms, all of which have identical cost functions C(y) = :92 + 1 for y > U and (20]) = 0. Suppose that initially the demand curve for this industry is given by D(p) = 52 p. (The output of a rm does not have to be an integer number, but the number of rms does have to be an integer.) (a) What is the supply curve of an individual rm? 3(1)) = (b) If there are in rms in the industry, what will be the industry supply curve? Y: (c) What is the smallest price at which the product can be sold? 10* = (d) What will be the equilibrium number of rms in the industry? (Hint: Take a guess at what the industry price will be and see if it works.) * n: (e) What will be the equilibrium price? p'\" = (f) What will be the equilibrium output of each rm? 3;\" = (g) What will be the equilibrium output of the industry? Y' =