Problem 7: There are 3 firms in Charleston, SC that offer horse-drawn carriage tours of the city. Suppose the total demand for tours per day: Q=550-10P Assume there are three (n =3) firms currently in the market selling some version carriage tours. These firms have some degree of market power due to product differentiation so we can treat these firms as monopolistic competitors. Each firm has total cost given by: TC = 500+40q; -0.3q +0.002q a. Find the proportional demand faced by one brewer, denoted Firm . That is, suppose the firms have equal market share and determine the demand function for a single firm. b. Calculate the optimal quantity produced by Firm . Calculate Firm i's profits. d. Is this market in long run equilibrium? If so, how do you know? If not, what do you expect to happen in the next short-run period? C.