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Sure, let's break this down step by step:

a) First, we need to identify the output quantity for the typical individual firm when the market
price is $P_1$, denoting this quantity as $q_1$. To do this, we look at the intersection of the
marginal cost (MC) curve and the market price line $P_1$ in Panel A of the graph. The quantity
corresponding to this intersection is the output quantity $q_1$ for the typical individual firm at
the market price $P_1$.

b) Next, we need to plot the short-run supply curve of the market in Panel B based on the
individual firm's cost curves. The short-run supply curve is derived by horizontally summing the
individual firms' supply curves at each price level. To indicate the correct position and slope, we
need to consider the marginal cost and the portion of the marginal cost curve above the average
variable cost curve. This will provide the short-run supply curve for the market.

c) Finally, we need to indicate the equilibrium quantity for the entire market at the price $P_1$,
labeling it as $Q_1$. The equilibrium quantity occurs where the market supply curve intersects
the market demand curve at the price $P_1$. This intersection point gives us the equilibrium
quantity $Q_1$ for the entire market.

Remember to check your output and ensure that your analysis aligns with the provided graph.
It's important to pay attention to the details and accurately interpret the graph to arrive at the
correct answers. Good typography and clear presentation can also help convey your analysis
effectively. Good luck with your analysis!

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