19-22. A (typical) rm in a perfectly competitive constant cost industry has total costs in the short run given by: TC=588+8q+3q2, q>2 FC = 396 Where q is output per day and TC is the total cost per day in dollars. The rm has xed costs of $396 (already included in the TC equation above). The TC equation generates minimum average costs of $92 (per unit) at q = 14. Questions 19 through 22 concern this rm and this industry. 19. You are told that in the short run there are 400 rms, including this one, in the industry, all With the same cost curves described above. Suppose that the demand curve facing the industry is given by the equation P = 908 .135Q Where P is the price per unit and Q is the number of units demanded per day. The equilibrium price in this industry in the short run is: A) $86 B) $92 C) $95 D) $98 E) $101 F) $105 G) $108 H) $110 1) $111 J) none ofthe above 20. This prot earned by each rm in this industry in this short run equilibrium is: A) $69 B) $72 C) $87 D) $93 E) $96 F) $99 G) $105H) $1101)$111 J) none ofthe above 21. This rm's shut down price is: A) $34 B) $47 C) $53 D) $56 E) $65 F) $68 G) $71 H) $83 1) $89 J) none of the above 22. We are now in a new short-run situation with 400 rms in the industry and the same cost curves described at the beginning of this set of questions. Now, imagine that the industry demand curve falls to P = 268 .03 5Q. When the industry settles down into a new shortrun equilibrium, what will be the new equilibrium price? A) $86 B) $92 C) $95 D) $98 E) $101 F) $105 G) $108H) $110I)$111 J) none ofthe above