QUESTION 2: Consider a competitive market. There are X number of firms in this market. Every firm is facing the following set up: a. How does the number of firms in the industry, affect each firm's demand curve? Why? b. What will be the production in this market? What price will the companies charge? How much profit will firms make? c. What is the minimum number of firms in the market so that everyone is making losses? d. How many firms will exist in this market in the long-run?

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