Firms and Industries Changing Over Time—Cost Curves] John is a graphic designer freelancer on an online platform. Suppos

[answerhappygod]

Firms and Industries Changing Over Time—Cost Curves] John is agraphic designer freelancer on an online platform. Suppose thatthis industry is perfectly competitive.
a. John works from home and is currently making positiveeconomic profits given his equipment costs and utility bills. Drawa diagram that is consistent with this short-run equilibrium. Yourdiagram should include two graphs: one showing themarket demand and supply and a second sketching cost curves forJohn’s services. Your graph should label all axes, curves, themarket equilibrium price and quantity, John’s quantity, and John’sprofits.
b. What happens to the freelancing industry in the long run?Modify your diagram from part (a) to demonstrate how the markettransitions from the short run equilibrium to the long runequilibrium. Additionally, explain in words how this transitionoccurs.
*** Question B Only **