4. Consider a perfectly competitive market characterized by the following demand and supply equations: QD = 1000 - 5P Qs = 5P - 200 Suppose all firms in the market have identical cost structures, with each firm's marginal cost given by the equation: MC = 40 + 40 Answer the following questions. a. Draw two separate diagrams side-by-side. i. On the left, plot a diagram showing the supply and demand curves for the market. ii. On the right, plot a diagram showing the marginal revenue and marginal cost for a single firm in this industry. b. Find the optimal price and quantity for a single firm. c. Since all firms are identical, you can calculate how many firms are in the market. How many firms are currently in this market? (Hint: You know the total amount produced, and you know the amount produced by each firm.) d. Suppose the firm's Total Cost (as a function of Q) is given by the equation TC = 202 + 40Q + 500. Calculate profit for an individual firm. e. Using the Total Cost equation provided in part d, find the firm's Total Fixed Cost. (Hint: Remember that TFC does not vary with the level of output, and you incur TFC even if you produce nothing.) f. Explain what will happens to the price and the number of firms over the long run. (You don't need to do any calculations; just explain in words.)