3. [Perfectly Competitive Firms] Each of 10 firms in a competitive market (this is a simplification- in practice we would think that a competitive market must have many more firms) has a cost function C(q) 9+q2. The market demand function is Q = 120 p, where Q is the total quantity sold in the market and p is the market price. (a) What is the equilibrium price, quantity per firm, market quantity, and level of profit per firm? Is this a short-run or long-run analysis, and how do you know? (b) Keep the cost function fixed at C (q) = 9+ q2, but suppose that firms will enter or exit until profits equal zero. Find the long-run equilibrium price, quantity per firm, and market quantity. 1 (c) Suppose the government imposes an excise tax of 50 cents on this good-when a consumer pays a price p for the good, the firm receives only p/2. Find the long-run equilibrium price, quantity per firm, market quantity, profit level, and the equilibrium number of firms. What effect does this excise tax have on the competitive market? In particular, who bears the burden of the tax?