Q1. Long run competitive equilibrium (A: 2 points B: 7 points C: 7 points D: 2 points) The market for XYZ is perfectly competitive. The market demand is given by Q{p) = 90 p. Currently there are nine firms in the market. Seven of these firms have the following cost function: TC(q) = F + 10q + 2q2. Two firms have TC(q) = 50 + 5q + g2. The market is now in the short run equilibrium with P = 30, but new firms can enter and existing firms can exit, so this may not be the long run equilibrium. A. Please verify that no firm with the cost function TC(q) = 50 + 5q + g2 will want to exit. B. Please compute the largest F value such that no firm TC(q) = F + 10q + 2q2 will want to exit. C. Assume that any new firm that wants to enter will have to use the cost function: TC(q) = F + 10q + 2q2. Please compute the smallest F value such that no new firm will want to enter. D. Use your answers to parts A and B to fill in the blanks in this sentence: If F is less than or equalto ___ and greater than or equal to , this market will be in the long run equilibrium with nine firms, seven of which have the following cost function: TC(q) = F + 10q + 2q2, and the other two have TC(q) = 50 + 5g + q2