Hi, please find the question below, this is all the information needed.

Question 2. (16 marks) Consider a competitive market in which all firms have the following cost function, ii) iii) iv) vi) 2 C(35) = :2- (2 marks) Find the equation for each firm's supply function when it takes price p as given and maximizes its profits. (4 marks) There are currently 2 identical rms operating in the market. If the market demand function is Find the competitive equilibrium price and quantity. Find each firm's prots. (2 marks) If a new firm appears with 60:) = 253: Why would it be able to succeed in the existing market? (3 marks) What would the new aggregate supply function be if consumers always purchase from the firm with the lowest supply price (at a given output level)? Include a graph of the aggregation to help you explain. (2 marks) Calculate the new competitive equilibrium price and quantity. What would the profits of the two types of firm be? (3 marks) 0n the basis of your reasoning in v) explain whether the new market equilibrium would be a Pareto improvement over the original outcome. Why or why not