Hello I have provided the answer I got below. I just wanted someone else to attempt this problem as well and draw the curve with specific p and q points if that is possible. I just drew a general upsloping graph so some more detail if possible is appreciated

The trash collection industry can produce output with human labor (L), or "Waste Allocation" (K). All firms in the trash industry are identical and the production function is F(L,K)=L + 5K

There are 1000 units of Labor are supplied perfectly inelastically, while capital is supplied perfectly elastically at a price R=100.

1 Draw the long-run industry supply curve, taking into account general equilibrium effects on W and R.

ANSWER) The total cost function of a firm will be of the form:

TC = WL + RK

Where L is quantity of labor and K is quantity of capital.

TC = 20L + 100K

The industry has identical firms which implies that the industry is perfectly competitive. The supply of labor is fixed. So, if in the long-run, the firms increase theiroutput,theywill need to increase the wages to hire more workers. This will imply that as output increases, the cost of the firms will also increase. This implies that it is an increasing cost industry.

For an increasing cost industry with a perfectly competitive market structure, the long run industry supply curve will be upward sloping.Its upward slope will indicate increasing prices as the industry expands. The long run industry supply curve has been represented in the diagram given below.