. Team: FRQ #2: Perfect Competition Tony is a producer of palm trees in a perfectly competitive market that is currently in long- run equilibrium at the price of $50. At equilibrium quantity of 100 trees, Tony's average variable cost per tree is $35. a. Draw a graph for both the industry and Tony's firm (include MR, MC. ATC, and A VC). i. Label the area of Tony's Total Revenue ii. Label the area of Total Cost iii. Label the shut down point b. Describe Tony's firm in terms of the following: i. Productive efficiency ii. Allocation efficiency c. With side-by-side graphs, show the results of an increase in demand for palm trees and identify what happens to the following in the short-run