Question 1: Perfect Competition Suppose that there are 200 perfectly competitive firms that sell vegetables. 2) b) ) d) ) Each firm faces total costs of TC(q)= 10g* + 90. Market demand is Qp(P) = 1500 5P. Derive the firm supply curve. Derive the market supply curve. What are equilibrium price and equilibrium quantity? Graph the inverse demand and inverse supply curves for the market the equilibrium price and quantity. Calculate consumer and producer surplus. In the short-run, do the firms earn zero economic profits? Describe what will happen in the long-run. (Note: you do not need to do any calculations for the long-run calculation, but you can if you want)