In 2012, the box industry was perfectly competitive. The lowest point on the long-run average cost curve of each of the identical box producers was $4, and this minimum point occurred at an output of 1,000 boxes per month. The market demand curve for boxes was                           QD= 140000 - 10000P where P was the price of a box (in dollars per box) and QD was the quantity of boxes demanded per month. The market supply curve for boxes was                          Qs= 80000 + 5000P Where QS was the quantity of boxes supplied per month. (a) What was the equilibrium price of a box? Is this the long-run equilibrium price? (b) How many firms are in this industry when it is in long-run equilibrium?

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In 2012, the box industry was perfectly competitive. The lowest point on the long-run average cost curve of each of the identical box producers was $4, and this minimum point occurred at an output of 1,000 boxes per month. The market demand curve for boxes was

                          QD= 140000 - 10000P

where P was the price of a box (in dollars per box) and QD was the quantity of boxes demanded per month. The market supply curve for boxes was

                         Qs= 80000 + 5000P

Where QS was the quantity of boxes supplied per month.

(a) What was the equilibrium price of a box? Is this the long-run equilibrium price?

(b) How many firms are in this industry when it is in long-run equilibrium?

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