3. (Perfect Competition) Assume the market for tomatoes is perfectly competitive and there are 100 identical firms (that have identical costs) that make up the tomato market. Draw two graphs side by side in the space below showing the market and a representative firm. For the firm diagram, you need to be sure to include D, MR, AR, MC and label clearly P and q*. Use the following data on your graphs where appropriate and answer the following questions. Market equilibrium price(P*) - $2.50 per pound Market equilibrium quantity (Q*) = 4,000 pounds per week Representative Firm Market a) What is the q* for each firm, assume the firm wants to maximize profit/minimize losses? Add that to your firm diagram above. b) If the firm's ATC = $3.00 and AVC = $1.25 at q*, is the firm currently earning a profit or a loss? You should have a rough idea of what the ATC and AVC curves will look like for this firm, so add this to your diagram. Shade in the area representing profit/loss above and calculate the profit/loss below