Question 1 Consider the selfie stick industry. a) '0) Discuss how you can regard the sele stick industry as a competitive market based on the four assumptions we make on perfect competition. Now discuss how the sele stick industry may also Violate each of the four assumptions on perfect competition. For the rest of this question, assume sele stick industry is a perfectly competitive market. Sketch marginal cost and average total cost curves for a typical sele stick manufacturer, assuming it is making a prot on each stick in the short run. Mark the shortrun equilibrium point and shade the area that corresponds to the prot made by the stick manufacturer. Assume $2.25 is the market level shortrun equilibrium price of sele sticks. Draw a typical short run demand and supply curve for the market. Label the equilibrium point. Given the protability of the business (in the short run), use graphs to show what will likely happen in this industry in the long run at both the rm and marketlevel. If the selfie stick industries in New York and Cuzco, Peru are both in long run equi librium, but sele sticks in New York are signicantly more expensive than those in Cuzco. Explain what the average difference in price between New York and Cuzco implies about costs in the two areas