Consider that a perfectly competitive, constant long-run cot industry with identical firms is currently in long run equilibrium.The market demand is described by the equation Q = 2020 - 2P and the total cost function for each firm is C(q) = 0.5q²+ 10q + 50.

1.With the long run equilibrium price in this industry?(4 points)

The long run equilibrium price is $.

2.Currently, how many firms are there in this industry?(4 points)

Currently, there arefirms in this industry.

3.What is the short run market supply equation?(4 points)

The short run market supply equation is

Suppose consumers become pessimistic about the future and the market demand in this industry decreases to Q = 1620 - 2P.The current market price is $18.

4.What is the firm's current (short-run) profit-maximizing level of output?(4 points)

The firm's current (short-run) profit-maximizing level of output is.

5.As the market adjusts in the long run, what would one expect in the long run equilibrium?(4 points)

In the spaces provided, complete the sentence using one of the following words or phrases in red:decrease|increase|not change|remain the same.

As the market adjusts, one would expect the market price to, the market supply to, the number of firms in the market to, and the firm's profit to.

6.What is the market quantity in the long run equilibrium?(4 points)

In the long run equilibrium, the market quantity is.

7.How many firms will be in the market in the long run?(4 points)

In the long run equilibrium, there will be