Ly Lab 9 (Question 5) ~ Lyryx Learning Inc - Google Chrome laecon1.lyryx.com/student-servlets/LabServlet?ccid=3692 Lab 9 (Question 5) Name: Hang Ma Date: 2020-07-19 Question 5 [15 points] The market demand and supply curves in a perfectly competitive industry are given by: Pd = 30 - Q/800 and Ps = -12 + Q/250. Complete the following questions. a) Draw these functions on the graph below. Demand Demand Supply 36+ 32 28 Price ($) 4000 8000 12000 16000 20006 24006 Reset Quantity b) Calculate the equilibrium price and output in this industry. Equilibrium price = $0 Equilibrium output = 0 c) Now assume that an additional firm is considering entering. This firm has a short-run MC curve defined by MC = 6 + 0.4q, where q is the firm's output. If this firm enters the industry, what output should it produce? (Hint: It will set P = MC.) Output = 0 Official Time: 20:53:13 SUBMIT AND MARK SAVE AND CLOSE 9 8:53 PM 2020-07-19