1. [6 points] About a year ago, the mask mandates across were Canada were removed. In other words,
people weren't required by the law to wear masks in public places like restaurants and shopping malls.
Assuming the market for (regular/typical) masks is perfectly competitive and that the market was in a long-
run equilibrium before the mask mandates were removed, answer the following questions.
(a) Draw a well labeled diagram showing a typical mask producing firm's output and profit in the long-run
equilibrium.
(b) After the mask mandates are removed, what happens in the market for masks and how is a typical mask
producing firm affected in the short-run? Explain briefly with the help of an appropriate diagram(s).
(c) On the basis of the perfect competition model you studied, discuss how the short-run impacts of
removing the mask mandates on the market and firms differ from the long-run impacts.