Suppose all firms in a perfectly competitive industry have production processes characterized by the production function 
.Suppose the cost of labor is 20 and the cost of capital is 10.
a.Suppose that the industry is in long run equilibrium and that firms are using 1 unit of capital.What is the short run cost function of each firm?
b.Suppose there are 5,000 firms in long run equilibrium.What is the short run market supply function?
c.Suppose market demand is 
What is the equilibrium price?
d.Firms in this industry face a recurring fixed cost FC.What must FC be in order for this industry to indeed be in long run equilibrium with its 100 firms?
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