Question: Please help with these review problems from the book. Please show all work by hand. I GIVE GOOD POSITIVE RATINGS!!! 3. Eguilibrium, Consumer SurplusI and

Please help with these review problems from the book. Please show all work by hand. I GIVE GOOD POSITIVE RATINGS!!!

Please help with these review problems from the book. Please show all

3. Eguilibrium, Consumer SurplusI and Producer Surplus in the Long Run: Consider a firm operating in a constant costs, perfectly competitive industry. The firm has short run total costs equal to TC = q2 + 4q + 16 and short run marginal costs MC = 2q + 4 a. Plot the short run supply curve for this firm (P on the vertical axis, q on the horizontal axis). Suppose this firm operates in a perfectly competitive market, and in the (market) short run the price is $20. Given this price, what is the profit maximizing level of q, and what is the amount of producer surplus for this firm in the short run? (5) b. In the market long run, assuming this is a constant costs, perfectly competitive industry and that all firms face these same cost curves, what will the equilibrium price be? How do you know? What will the equilibrium level of firm output be? (10) c. Suppose market demand is 0d = 74 2P Derive and plot the demand curve (with P on the vertical axis and Q on the horizontal axis). In long run equilibrium, using the longrun equilibrium price you calculated in part (b), what is the total quantity demanded in this market? What will total consumer surplus be in long run equilibrium? What will total producer surplus in the market be in long run equilibrium? Explain

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