For each firm within an industry, T = X(X - 1)2 + 25X; where T is the long-run cost of the firm, and X is the firm's level of output. For the industry as a whole, Y = 34 - p; where Y is total consumer demand for the industry's product, and p is the price of this product.
Assuming first that the industry is a monopoly, find the values of X, Y, p and π; where π is the firm's level of profits (pX - T).
Assuming next that all barriers to entry are eliminated to make the industry perfectly competitive, find the new value of each of the four variables (X, Y, p and π) calculated in part A, and determine the new number of firms in the industry.
Estimate the difference in consumer surplus between parts A and B.