17th Assignment Consider a representative firm with total costs of TC=16+1/ Q2 (and a marginal cost of Q, MC=1/, Q). The market demand curve is given by P=10-1/Q and the starting market price is $2. 1) Graph the starting scenario using comparative statics. 2) Calculate any profit or loss. Why is this not a long run equilibrium? 3) What happens in order to transition to the long run? 4) Graph the long run equilibrium using comparative statics. 5) How many firms are in the market in the long run