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9.5 Gasoline is sold through local gasoline stations under perfectly competitive conditions. All gasoline station owners face the same long-run average cost curve given by AC .01q 1+100/q and the same long-run marginal cost curve given by MC 02q-1 where q is the number of gallons sold per day. a. Assuming the market is in long-run equii brium, how much gasoline will each individual owner sell per day? What are the long-run average cost and marginal cost at this output level? b. The market demand for gasoline is given by QD 2,500,000-500,000Pwhere Qp is the number of gallons demanded per day and P is the price per gallon. Given your answer to part a, what will be the price of gasoline in long-run equilibrium? How much gasoline will be demanded, and how many gas stations will there be? c. Suppose that because of the development of solar-powered cars, the market demand for gasoline shifts inward to QD 2,000,000-1,000,000P In long-run equilibrium, what will be the price of gasoline? How much total gasoline will be demanded, and how many gas stations will there be? d. Graph your results.

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