1. [5 points) Manufacturers of laundry detergent and dishwashing soap reinvest a relatively large percentage of their sales revenues on advertising campaigns. Most of these advertisements that appear on television stress the fact that their product is \"New and Improved." 1What sort of a market (perfectly competitive, monopoly, monopolistically competitive) is laundry detergent and why are the rms advertising? Please give an explanation. 2. (5 points) You are the manager of a small U.S. firm that sells nails in a perfectly competitive U.S. market [the nails you sell are a standardized commodity; stores view your nails as identical to those available 'om hundred of other rms). You are concerned about two events you recently learned about through trade publications: (i) the overall market supply of nails will decrease by 2 percent due to the exit by foreign competitors, and {ii} due to a growing U.S. economy, the overall market demand for nails will increase by 2 percent. Based on this information, should you plan to increase or decrease your production of nails in the short run'?I Please explain. 3. [5 points) The second largest public utility in the nation is the sole provider of electricity in 32 counties of southern Florida. To meet the monthly demand for electricity in these counties, which is represented by the estimate inverse demand mction P = 1,2[l 4Q, marginal revenue function is hilt = 1,2 - SQ, the utility company has set up two electricity generating facilities: Q1 kilowatts are produced at facility 1 and Q2 kilowatts are produced at facility 2 (so Q = Q1 + Q2). The costs of producing electricity at each facility are estimated as C1(Q1) = 8,000 + so]? and mm: um and C2032} = 6,033 + 3Q;2 and MC; = Qg, respectively. Determine the profit maximizing amounts of electricity to produce at the two facilities, the optimal price, and the utility company' s prots. Please show your calculations