2-3 is what I need help with.

2. Economic and Accounting profit (12 points) a. Suppose a perfectly competitive market is in long-run equilibrium, so that all firms in the market are earning zero economic profit. Does this mean that all of the firms are earning the same accounting profit? Why or why not? Briefly explain your answer. b. Suppose two firms are identical in every way, except one has a more desirable location. Which firm has higher implicit costs? Briefly explain your answer. 3. Supply and Demand. (20 points) Use the graph below shows the demand and supply curve for red bell peppers. Use this to answer the following questions. P $7.00 $5.00 D 100 120 140 Q a. What is the equilibrium price and quantity of peppers? b. If the price of peppers is $5.00, how many would be bought and sold? Is this market in equilibrium? Or is there a shortage or surplus? Which and how much? What is likely to happen to the price in the near future and why? Briefly explain your