Question 2 Suppose that all firms in an industry have the following long-run cost curve: C = 4q2 + 100q + 100. The demand in this market is given by Qd = 1280 - 2p. 2.1 Suppose the number of firms in the market is restricted to 80. Derive the market supply curve with this restriction. Find the market equilibrium price and quantity with the restriction. [3] 2.2 Calculate producer, consumer, and total surplus. [3] 2.3 If firms are allowed to buy and sell these permits in an open market, what will be the price of permits assuming that the government will sell those permits so as to extract all the profits from the firms? [3]