2. Consider a perfectly competitive producer in the U.S. natural gas market. In the long run, this producer's total cost and marginal cost functions are given by: TC(Q) = Q2 +2Q MC(Q) = 2Q +2. The market price, which the producer takes as given, is P = $12/ft?. (1 pt) a. Derive this producer's average total cost (ATC) function. b. Calculate the long-run quantity of natural gas (Q) that would be supplied by the producer, if a decision is made to stay in business. c. Calculate the producer's average total cost (ATC) value at Q*. d. Will this producer stay in business in the long run? Why/why not? e. Calculate the producer's long-run profit. (1 pt) (1 pt) (2 pt) (1 pt) 2. Consider a perfectly competitive producer in the U.S. natural gas market. In the long run, this producer's total cost and marginal cost functions are given by: TC(Q) = Q2 +2Q MC(Q) = 2Q +2. The market price, which the producer takes as given, is P = $12/ft?. (1 pt) a. Derive this producer's average total cost (ATC) function. b. Calculate the long-run quantity of natural gas (Q) that would be supplied by the producer, if a decision is made to stay in business. c. Calculate the producer's average total cost (ATC) value at Q*. d. Will this producer stay in business in the long run? Why/why not? e. Calculate the producer's long-run profit. (1 pt) (1 pt) (2 pt) (1 pt)