Consider a market with identical firms that each have the cost function: C = 64 + 20 Q+ 4 Q2 The market demand function is: QD = 2000 ce20 P The market starts in a long-run equilibrium. a) (15 points) What is the initial equilibrium (P*, QM, QF)? What are firm profits in the initial situation? b) (15 points) Now consider that during the short-run, the cost function of all of the identical firms changes to the following: C =64 + 10Q +4 Q2 What is the outcome (P*, QM, QF) in the short-run? What are the profits of each firm in the short-run? c) (15 points) If all firms in and out of the market have the new cost function in the long-run, what is the outcome (P*, QM, QF) in the long-run? What are the profits of each firm in the long-run? How many firms are in this market in the new long-run