3. There are two types of firms in an industry. Type 1 firms have the costs TC(n) = 625+ 0.25qi and type 2 firms have costs TC(2) 50000.52 The fixed costs for both types of firms are NOT sunk. (a) Derive each firm’s ATC(g), AVC() and MC() functions and plot the curves on separate diagrams (b) Derive each firm’s supply function q(p) and show the corresponding curves in the diagrams (c Suppose that there are 10 firms of each type. What is the industry’s supply curve? Plot the industry’s supply curve and indicate price ranges at which no firms operates, only 10 firms operate, all firms operate (d) If consumers demand is Q (p4800 10p what is the short-reiibrium price and quantity? Is each firm making positive profits? Calculate the producer surplus the consumer surplus, and the total surplus in the market. What are the long-run equilibrium price, quantity, and number of firms? (e) If consurners demand is QD(p) 2400-10p what is the short-run equilibrium price and quantity? What are the long-run equilibrium price, quantity, and number of firms?