Suppose that we exist in a perfectly competitive industry, and we begin in longrun equilibrium. The cost curves are as below. w 9 0 U stun: s uutc p m: M\" MC D C: 0. Now suppose that the government also implements a $10 excise [per unit) tat-r on the producers in this market. 1) What will happen to short-run profits for firms in this market? Draw what happens to the market price and show what happens to rm profits using supply and demand and the cost curves similar to the figures above. [hint in the shortrun, you will want to use the shortrun supply curve, not the longrun supply curve] 2} What would need to happen for firms to begin to exit in the short-run? Show this visually using using supply and demand and the cost curves. Show an example where firms would not be exiting on the short-run. 3] What will happen to the market price and the number of firms in the longrun as a result of this tax? Show this visually using using Supply and demand and the cost curves. 4) who ends up paying the incidence otthis tax in the long-run {buyers or sellers}