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Consider the market demand for avocados in California, 695 where p is the price in cents per pound, q is the quantity in million pounds and the coefficients are based on a linear regression of price on quantity , with the estimates approximated by simple numbers for your convenience. The market for avocados is perfectly competitive and there are n = 3000 producers of avocados in the market. Suppose the production function for each farm is q= v K + v/ -e + d, where q is the quantity produced in pounds, K and & are the units of labour and capital employed and e. d are constants, Let w denote the wage in cents per unit of labour and let ~ denote the rate in cents per unit of capital. Furthermore, assume that the producers face no fixed costs, a. Determine the cost function. C'(g). for each producer. Now assume that w = 100, p = 0.002, e = 10000 and d = 42000. b. Determine the market supply of avocados, with the quantity supplied in million pounds and the price in cents per pound. c. Find the equilibrium price and quantity in the market. Determine each producer's economic profit and the consumer surplus. d. Suppose that in the short-run, the government provides the producers with a subsidy of 10 cents per pound, How does this policy affect the quantities in part 407 Are the consumers better off with this policy? How about the producers