1. The cost function for any potential firm in a manufacturing industry is C(y) = 2+ 8y + 2y? (if a firm exits the industry, then its cost is zero). The inverse market demand function is given by P(y)...

Extracted text: 1. The cost function for any potential firm in a manufacturing industry is C(y) = 2+ 8y + 2y? (if a firm exits the industry, then its cost is zero). The inverse market demand function is given by P(y) = 100 – 2y. (b) If the industry allows free entry and all the firms are price takers, what is the number of firms in equilibrium?