Suppose that each firm in a competitive industry has the following costs:Total Cost: TC=50+1/2q2Marginal Cost: MC = qwhere q is an individual firm's quantity produced. The market demand curve for this product is:Demand QD=140?2Pwhere P is the price and Q is the total quantity of the good. Each firm's fixed cost is ( ).What is each firm's variable cost?1/2q1/2q250+1/2qqWhich of the following represents the equation for each firm's average total cost?50/q50/q + 1/2 q50+1/2 q1/2 qComplete the following table by computing the marginal cost and average total cost for q from 5 to 15.q Marginal Cost Average Total Cost (Units) (Dollars) (Dollars)5 6 7 8 9 10 11 12 13 14 15 The average total cost is at its minimum when the quantity each firm produces (q) equals ( ) .Which of the following represents the equation for each firm's supply curve in the short run?120?1/2 q2q50?q1/2 q2In the long run, the firm will remain in the market and produce if (5 < q < 15, q .Currently, there are 8 firms in the market. In the short run, in which the number of firms is fixed, the equilibrium price is ($ ) and the total quantity produced in the market is ( )units. Each firm produces ( ) units. (Hint: Total supply in the market equals the number of firms times the quantity supplied by each firm.)In this equilibrium, each firm makes a profit of ( ). (Note: Enter a negative number if the firm is incurring a loss.)Firms have an incentive to (enter/exit) the market. In the long run, with free entry and exit, the equilibrium price is ( ) and the total quantity produced in the market is ( ) units. There are ( ) firms in the market, with each firm producingunits.