The market for Chai is perfectly competitive. Each firm has a cost function given by c(q) = 16 + q 2 , where q is the output produced by a firm. Any firm which stops production has no cost. The inverse demand function is given by Q = 80 p. (a) Find and draw the supply curve of a competitive firm in this market. (b) Suppose there are 8 price taking firms in the market. Find the equilibrium price and quantity.3 (c) Now suppose there is free entry and exit in this market. New entrants will have the same cost function. What is the equilibrium price, quantity and number of firms in the long run?4