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Suppose that the U.S. textile industry is competitive and there is no international trade in textiles. In long run equilibrium, the price per unit of cloth is $30.
a. Describe the equilibrium using graphs for the entire market and for an individual producer.
b. Assuming that U.S. textile producers have large fixed costs, what is the short-run effect of these imports n the quantity produce by an individual producer? What is the short-rub effect on profits? Illustrate you answer with a graph.
c. What is the long-run effect on the number of U.S. firms in the industr
