(b) Find a competitive firm's supply function. If there are / firms in the industry, what is industry supply? (c) Suppose that there are / firms in the industry and that they are price takers. What are the equilibrium price and quantity? Firm supply, quasi-rents, and profits?2. The longrun cost function for a good is TC(q] = f + \"mg-2 where f is a long run xed cost. In the short run f is sunk. The demand for a good is DUJ] = A p. (a) What is short run average cost function for a rm which produces this good? Shortrun marginal cost'? Put both curves in one graph. Suppose that N = 2. u} = 4. :1 = ltl. and f = 100. (d) What are the equilibrium price and quantity? Firm supply and prots? (e) Using two diagrams graph this competitive equilibrium. In one dia gram illustrate the market equilibrium. In the second show the equilib rium position of a representative rm. Indicate the prot maximizing output of a rm and the prot earned. (t) Is the equilibrium you found a shortrun or longrun equilibrium? Why? If the industry is not in longrun equilibrium. explain the adjustment process that will occur. (g) Find the efcient scale of production and efcient average cost. (h) What are the longrun equilibrium price. quantity. and number of rms'? In your diagrams show the long run equilibrium