Problem 2. Assume there are ten firms operating in a perfectly competitive market for a product. Each firm has fixed costs of 4 and variable costs VC(Q) = Q2 (2.1) Find TC(Q), MgC(Q) and ATC(Q) for a representative firm. (2.2) What is the short-run supply curve for a single firm? And for the entire market? (2.3) Suppose the market demand curve for this product is given by Q = 20 - P. Find the market price P that makes the quantity demanded equal to the quantity supplied in this market. How many units are sold at this price? (2.4) At the equilibrium price you found above, what is the output and profit for each firm? (2.5) If there are no barriers to entry and exit in this industry, do you expect prices to remain stable, increase or decrease in the future? Why? (2.6) What price you expect to see in this market in the long run? How much will each firm produce at this price