Now consider the impact of the ban of hydrofluorocarbons. The ban will force refrigerator manufacturers to retool their factories to use different coolant materials as well as use more expensive equipment from now on. Assume this will represent a permanent increase in Fixed Cost for each refrigerator manufacturer.

• On the same (side-by-side) graph you produced in Question 2, graphically depict any changes in the marketplace and any changes that impact the individual firm.
• Show the movements of the appropriate curve or curves at this new Short Run Equilibrium (SRE).
• Indicate the new market equilibrium P₁ and Q₁, the optimal output of an individual firm representative of the other firms in the industry at this SRE (labeled as q₁), and the individual firm's profit, if any (shaded and clearly labeled as ?₁).
• Provide a brief narrative explaining the movements and the resulting change in an individual firm's profit, if any. Please make sure you address the changes in the market equilibrium quantity Q, market price P, and the individual firm's profit maximizing quantity q, if any.

Please make sure to label all relevant points and axes.

QUESTION 2 Questions 2, 3, and 4 consider the market For refrigerators in the U.S. The May 4, 2021 print edition of The Wallsrreerjoumal had a story trtled \"EPA Eyes Emissions of Cooling Appliances.\" (You do not have to read this article to understand the setup of questions 2. 3, arid 4.} The article reports the EPA is gorng to ban the use of hydrouorocarbons in cooling devtces such as air coridrtioners and refrigerators. Assume, for purposes of Questions 2, 3, and 4, that the refrigerator market is currently a perfectly competitive market With the followrrig conditions: 1) Downward-sloping market demand; 2) Upward-sloping market supply; and 3) U-shaped Average Total Costs and Marginal Costs for indivrdual firms. Question 2: For Question 2. you should assume the EPA has not banned the hydrouorocarbons arid the refrigerator industry is initially in Long Run Equilibrium. Graphically depict (using sideabyaside graphs, With the graph on the left shoWing the market and the graph on the nght showmg an indrvidual supplierjproducer representative of the rest of the firms): - the perfectly competitive supply and demand curves (so and Do. respectively] and the market price and quantity (Po and 00 respectively) - an individual rm's marginal revenue (MR), marginal cost (MC), average totalcost (ATE) curves, the prot maximizing quantity (P0 and go), and prot (119). If there is no prot, please indicate so on the graph. - Provide a brief narrative explaining the protability of an individual firm in an LRE. Please make sure to label all relevant points and axes. Please upload a single Microsoft Word or PDF le with a graph and a narrative response as an answer to this question. Attach File arouse My Computer Browse Content Collection QUESTION 3 Question 3: Now consider the impact of the ban of hydrouorocarbons. The ban will force refrigerator manufacturers to retool their factories to use drfferent coolant materials as well as use more expensive equipment from now on. Assume this will represent a permanent increase in Fixed Cost for each refrigerator manufacturer. - On the same (side-by-side) graph you produced in Question 2, graphically depict any changes in the marketplace and any changes that impact the individual rm. a Show the movements of the appropriate curve or curves at this new Short Run Equilibrium (SRE). . Indicate the new market equilibrium P1 and 0;, the optimal output of an individual rm representative of the other rms in the industry at this SRE (labeled as (11}, and the individual rm's prot. if any (shaded and clearly labeled as 111). - Prowde a brief narrative explaining the movements and the resulting change in an individual rm's prot, if any. Please make sure you address the changes in the market equilibrium quantity Q, market price P. and the individual rm's prot maXirriizing quantity q. if any. Please make sure to label all relevant points and axes. Please upload a single Microsoft Word or PDF le with a graph and a narrative response as an answer to this