Please help me with this

D1. [26 points] Consider a rm in the perfectly competitive industry with identical rms. A pandemic has caused a sudden drop in market demand and for simplicity, no change in costs. Assume that this pandemic will end in a few months and things will go back to normal. The policy maker's goal is to prevent rms from going out of business and shutting down until the pandemic is over. There are two proposals under consideration. Proposal 1: A stimulus package of $10K to all rms. Proposal 2: A per-worker subsidy of $5 per hour during the pandemic. a. [9 points] What is the impact of Proposal 1 on a rm's decision to stay in business in the short-run? Explain your reasoning, clearly state any assumptions you are making. b. [9 points] What is the impact of Proposal 2 on a rm's decision to stay in business in the short-run? Explain your reasoning, clearly state any assumptions you are making. (3. [8 points] Suppose demand goes back to normal after the pandemic is over. What are the long-term effects on the businesses if the government continues 1) paying $10K to all business each year, and 2) pays a per-worker subsidy of $5 per hour