Question 20 20 pts Birdbaths are produced in a perfectly competitive market. Each identical firm has a short run total cost function equal to SRTC = 200 + 20q + 0.5q, where q is the number of birdbaths produced by the firm. The market price for each birdbath is equal to $30. Show your work to receive full credit. a) Define and graph the firm's short-run marginal cost (SRMC) and marginal revenue (MR) curve. Calculate and mark the profit-maximizing q*. b) Write the equation for the short-run average total cost curve (SRATC) and solve for its value evaluated at q* (SRATC*). Draw the SRATC and mark SRATC* on your graph from part (a). c) Calculate the firm's economic profit when they produce at q*. Shade the area the represents profit on the graph you drew above. d) Based on your answer in part (c), what should happen to the number of firms in this market and what will happen to the market price in the long run? e) Calculate the long-run equilibrium price and the number of units each firm produces at that price. Mark the long-run price on the graph you drew in part (a) or draw a new graph to indicate where it is. Upload Choose a File