The May 5, 2021 print edition ofThe Wall Street Journalhad a story titled "EPA Eyes Emissions of Cooling Appliances."(You do not have to read this article to understand the setup of questions 2, 3, and 4.) The article reports the EPA is going to ban the use of hydrofluorocarbons in cooling devices such as air conditioners and refrigerators.

Assume, for purposes of Questions 2, 3, and 4, that the refrigerator market is currently a perfectly competitive market with the following conditions:

1) Downward-sloping market demand;

2) Upward-sloping market supply; and

3) U-shaped Average Total Costs and Marginal Costs for individual firms.

Graphically depict (using side-by-side graphs, with the graph on the left showing the market and the graph on the right showing an individual supplier/producer representative of the rest of the firms):

• the perfectly competitive supply and demand curves (S₀andD₀, respectively) and the market price and quantity (P₀andQ₀respectively)
• an individual firm's marginal revenue (MR), marginal cost (MC), average total cost (ATC) curves, the profit maximizing quantity (P0andq0), and profit (₀).If there is no profit, please indicate so on the graph.
• Provide a brief narrative explaining the profitability of an individual firm in an LRE.