Solve this problem please.

Question 8 Suppose that the market for 2B pencils is perfectly competitive. Firms in the market are producing output but, due to the rise in popularity of using digital devices, these firms are currently incurring supernormal (or, economic) losses. a) Sketch an appropriate diagram showing a graph for the market for 2B pencils and a graph for a typical firm in that market (side-by-side). In this set of diagrams, show and explain the market price in comparison with the average total cost, the average variable cost, and the marginal cost of producing 2B pencils. Clearly indicate the area representing the total supernormal loss for the firm. [4 marks] b) If there is no change in either the market demand or the firms' costs of production, illustrate (continue with the set of diagrams you provided in part (a) above) and explain the firms' transition towards a long-run equilibrium. Comment on what will happen in the long run to: i. the price of 2B pencils, ii. the marginal cost, iii. the average total cost, iv. the quantity supplied by each firm, and Vv. the total quantity supplied to the market. [6 marks]