In 2012, the box industry was perfectly competitive. The lowest point on the long-run average cost curve each of the identical box procedures was $4, and this minimum point occured at an output of 1,000 boxes per month. The market demand curve for boxes was:
Qd=140,000 - 10,000P
whee 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= 80,000 + 5,000P
Where QS was the quantity of boxes supplied per month.
a) What was the equilibrium price of box? Is this the long-run equilibrium price?
b) How many firms are in this industry when it is in long-run equilibrium?