12. Consider a perfectly competitive market in equilibrium. Now assume the government awards each firm in this market a per unit subsidy, s. a. Using an appropriate diagram show the effect of this subsidy on the firm's marginal cost (MC), average total cost (ATC) and output. b. What is the long run effect of this subsidy on the market output? Assume the inverse demand function is P = 1000 - 2Q and the supply function is P= 100. c. What is the market price and output? Now assume that this market is monopolised by a single firm. The demand function remains the same but now the MC is constant and equal to 100. d. What is the profit maximising price and output of this monopoly? e. Calculate the deadweight loss of this monopoly