. The supply side of the market for rose quartz jewelry (q) consists of 10 identical firms operating in perfect competition with each other. Each firm has a marginal cost function given by Questions: MC(q) = (a) The firms are price takers and accept a price of P for each unit they produce. Assuming profit maximizing behavior on the part of these firms, derive the equation of an individual firm's supply curve and write this out in the form q = some function of P. (Hint: a perfectly competitive firm profit-maximizes by following the rule P = MC. Use this and a little algebra to derive an equation for quantity supplied as a function of P.) P (1) (b) Using your firm supply equation in (a) obtain the supply equation Q(P) of the entire industry (i.e., construct an equation for the total q offered by the all the firms together as a function of the common price P). Write this out in the form Q = some function of P. Then sketch in the industry supply curve in the graph below (note carefully the position of P and Q on the axes) 0 Suppose now that the demand curve facing the industry as a whole is given by the function: Q = 50 - 20P (c) Obtain the values of consumers surplus and producers surplus in equilibrium. Show details of how you obtained your numbers.