Show transcribed image text 100% (1 rating)Please gi…View the full answerTranscribed image text: In the US cotton market, there are 500 identical competitive farms, each farm having the cost function C(q)=162 10q 0.5q2 where q is the quantity of cotton in tons produced by each farm. The market demand curve is given by Qd=10,400−50p. (a) Calculate the market equilibrium price p∗. (b) Suppose the government gives each farm a subsidy of $8 per ton. Calculate the longrun market price. (c) How many farmers will there be in the cotton market in the long run?