Question 3 a) Suppose you are given the following information about a particular industry: Market demand: Qd :6500-100P Market supply: Qs = lZOOP Firm’s total cost: C(q) = 722 + q2/2OO Assume that all ?rms are identical, and that the market is characterized by pure competition. Find the equilibrium price, the equilibrium quantity, the output supplied by the ?rm, and the pro?t of each ?rm. Use two diagrams, one for the market and the other for a ?rm, to show your ?ndings. b) The global propylene industry is perfectly competitive, and each producer has the long-run total cost function: LTC(Q) = 40Q * 6Q2 + Q3/3. The market demand curve for propylene is D(P) : 2200 — 100P. What is the long-run equilibrium price in this industry, and at this price, how much would an individual ?rm produce? How many active producers are in the propylene market in a long-run competitive equilibrium?