Suppose there are 10 price-taking firms in the competitive market for clothing. They each have the following cost function, vii) viii) ix) (4 marks) Ignoring your answer in vi), assume that the market demand function is 50000 X(p) = P Find the competitive equilibrium price and quantity using the market demand function with the market (or aggregate) supply function you derived in in viii). C(x)= = 40x + 0.6x. (2 marks) Find the equation for each firm's supply function when it takes price p as given and maximizes its profits. (1 mark) Aggregate the firms' supplies to obtain the market supply function. Page 1 of 2 x) xi) (2 marks) Calculate the profits earned by each firm. (2 marks) If there are no barriers to entry, what will happen to the number of firms in the market? Why? Use a graph that shows the effect of a change in the number of firms on the equilibrium price and quantity to explain the path the market will take.