(2022 Fall Final (252-56) Consider a perfectly competitive industry where all the firms (including the potential entrants) are identical. Suppose their product is perfectly divisible. Regardless of how many firms are in the industry, for each individual firm, when q units are produced, its marginal cost is Maw=q and the corresponding total variable cost is TVC(q) =0.5q2 The demand curve in the market is Q = 7700 7UP The market is currently in a long-run equilibrium, and the equilibrium price is $35 per unit. (a) Using the information, we conclude that there are '1 firms currently in the market. X (b) Suppose the fixed cost of each individual firm depends on the number offirms in the market. For example, the rent for the factory space is higher when there are more firms. When there are nfirms in the market, the fixed cost of an individual firm is of the form FC(n) = C X (11/700). Using the information above, we conclude that (is equal to -. (c) Using the information above, we conclude that the industry Is 0 a. a constant cost industry 0 b. an increasing cost industry 0 c. a decreasing cost industry m? V: (d) Suppose after a change in demand, the industry reaches the long-run equilibrium again. There are now 'IOO firms in the industry. Using the information above, in this equilibrium, each firm produces :1 units. X (e) In this new long-run equilibrium, the equilibrium price is $:' per unit