Firm and Market Supply, Perfect Competition (30 points) Suppose there are two rms Acme (A) and Bottom (B) who together supply the entire world with xylophones (x). Suppose that in terms of their supply behavior they act as though they were perfectly competitive firms. Let their SRMC, SRAVC, and SRAFC cost functions be, respectively: SRMC\" = 5x ; SRAVC\" = Ex SRMCb=4+x ; SRAVCD=4+ 1 SRAFC\" = SRAFC\" = E A. (6 points) Graph out the SR supply curves for A and B. B. (8 points) Construct the SR supply curve for an industry consisting of the firms A and B. C. (8 points) Assume that either firm can sell as many x as it likes at the price of P = 5. Calculate the respective levels of supply forthcoming from each firm and calculate each firm's producer's surplus. D. (8 points) Now calculate each firm's profits at P = 5. Are producer's profits and producer's surplus the same thing? Why (or why not)