5. [Perfect Competition] The demand for the good produced in a perfectly competitive industry is given by P(Q) = 59-Q. The optimal technology for minimizing LRATC is given by TC(qi) = 100- q + 0.5q. How many firms are in this industry in the long run?
(a) pbe = 13.14, Q = 45.86, leads to N ~ 3.24. If we restrict ourselves to integer numbers of firms, that leaves us with three firms, as the fourth could not enter profitably.