Consider the following setup for a perfectly competitive market: Suppose that for the firm, TC =400+ (2, and MC=20. For the corresponding market, suppose that demand is given by P= 200- - o and supply is given by p = - In a graph, represent the supply and demand curve for the market, marking the equilibrium points. Right beside it, represent the firm in another graph, marking it's optimal output decision. O P P P = 2Q 2 200 -- 200 - P = 200 2 100 100 O . P P = 2Q 100 . 100 P = 200 - Q 50 Q 200 O P P P = 2Q P = 100 100 P = 200 - - 50 100 O P P P = 2Q P=Q 50 50 P = 200 - 25 Q 100 QUESTION 17 Consider the following setup for a perfectly competitive market: Suppose that for the firm, TC = 400+ 02, and MC=20. For the corresponding market, suppose that demand is given by P = 200- - o and supply is given by P= = 0 Calculate the firm's profits 4200 O -2100 O 2100 O -4200 QUESTION 18 Consider the following setup for a perfectly competitive market: Suppose that for the firm, TC =400+ 2, and MC =20. For the corresponding market, suppose that demand is given by p = 200- - o and supply is given by P= Q Given the firm's profits, is this situation sustainable in the long run? That is, will firms have an incentive to enter or leave the market? O Not sustainable, firms will enter the market. O Not sustainable, firms will leave the market. O Sustainable, firms will neither enter or leave the market. O Cannot be determined. QUESTION 19 Consider the following setup for a perfectly competitive market: Suppose that for the firm, TC =400+ 02, and MC=20. For the corresponding market, suppose that demand is given by p= 200- - ( and supply is given by P= Q Now suppose that there is an increase in supply, so that = - 120+ - o is the new supply curve. Will firms have an incentive to enter or leave the market? O Firms will enter. O Firms will leave. O Cannot be determined. O Firms will neither enter or leave the market