1. (31} points} Suppose there are 120 rms in the market. And each firm has AFCWJ 2 fit; + 20, and FE\" = 96. Suppose that this is a perfectly competitive market. {a} (6 points] Calculate the firm's longrun supply curve, you answer should be a func tion of p, {q(p)j. That is, how much a rm will produce at a given price. {b} (6 points) Calculate the industry supply curve. {c} (6 points) Suppose that the market demand is given by: (2 = HUI] HIP. What are the equilibrium price and quantity? {d} (6 points) What is the prot of each rm in the equilibrium you found in the previous question? {e} (6 points) Now imagine that the rms decided to merge and become one monopoly big rm. This new firm faces an :H'C = 2!}. Ff."- = [5. What is the optimal produc tion? What is the new market price? 'Nhat is the profit of the monopoly,r rm