How Many Bookstores? The city of Bookburg initially allows only one bookstore, which sells books at a price of $20 and an average cost of $11. Suppose the city eliminates its restrictions on...

How Many Bookstores? The city of Bookburg initially allows only one bookstore, which sells books at a price of $20 and an average cost of $11. Suppose the city eliminates its restrictions on bookstores, allowing additional stores to enter the market. According to an expert in the book market, “Each additional bookstore will decrease the price of books by $2 per book and increase the average cost of selling books by $1 per book.” Predict the equilibrium number of bookstores.