Section II-Six Long problems. (84 points total) 1. (17pts) Supply and Demand: The demand for toupees is equal to QD = 1040 - 2P, where P is the price of toupees, and QD is the number of toupees balding men demand at various prices. Assume that the market is perfectly competitive. a) (2pts) What is the inverse demand curve for toupees? b) (3pts) Plot the market demand curve on the graph provided below: c) (4pts) The cost of making toupees for any toupee maker is C =400 + q2. Derive i) MC of production ii) AC of production iii) AFC of production iv) AVC of production d) (4pts) In the long run, how many toupees will each firm make and what will be the price of each toupee? e) (4pts) In the long run, what will be quantity of toupees sold in the entire market and how many firms will be in the market? (Hint: Q and q have different meanings)