Please refer to the below question:

Q7 (6 marks). Suppose that all rms in a constant-cost industry in a competitive market have the following cost curve: C(q) = 4132 + 1009'! + 100 where q is the number of products sold by each rm. The demand in this market is given by 9\"\" = 1,280 2p. Suppose the number of rms in the market is restricted to 80. a (2 marks). Derive the supply curve with this restriction. Find the market equilibrium price and quantity with the restriction. b (2 marks). If rms are allowed to buy and sell these permits in an open market, what will be the rental price of a permit? Will rm's that own permits make prot? Briey explain. c (2 marks). How much deadweight loss is generated by the permit system? (You need to compare the case of free entry with the one with 80 rms.) Provide a graph showing the region of this deadweight loss