1. Answer the following questions based on the accompanying graph. Price MIC ATC $25 $20 $17 $14 $10 Quantity a. What is the profit-maximizing price and quantity? (1 point) b. At the profit-maximizing price and quantity, what are the firm's profits? (2 points) 2. Julie has estimated the demand and marginal revenue (MR) for her product. The equations are P = 100 - 2Q and MR = 100 - 4Q, respectively. She also experiences a constant marginal cost (MC) of $16. a. Does Julie have any market power? How can you tell? (1 point) b. What is Julie's profit-maximizing quantity? (3 points) c. What price should Julie charge at that profit-maximizing quantity? (3 points)3. Refer to the following graph to answer the next. four questions: ATE C O | 3 0 202530 a. What is the protmaximizing out-put for this monopolistically competitive rm? (1 point.) I). To maximize shortrun prot, what price will the monopolistically competitive rm charge? {1 point) e. Solve for the maximum shortrim economic prot earned by this Encampmlistwill},r competitive rm. (1 point} d. Describe what happens to prots for this monopolistically competitive rm in the long-run. (2 points} Ll. State which menarios are an example of price discrimination. (A yesfno for each one is ne, or you can list the numbers of the ones that are a yes, whichever is easier.) (4 points I15 each) 1. Lee and Dirk hath buy economy-class tickets on the same ight. Lee pays $83 less than Dirk because he booked two weaks earlier. 2. Joe and Sheila each buy tickets to the ballet and sit together. Joe paid 35 less than Sheila. did because of a. student discount. 3. At Little Nero's Pizza, the menu lists a cheese pizza for $8 and a supreme pizza for $11. 4. Bart and Lisa go to a club. Bart has to pay a. cover charge for entry. but Lisa gets in for free due to a "Ladies' Night" special. 5. Lee buys an economyclass airline ticket for $100, and Dirk buys a rstclass ticket for $200. 5. Jaime gets her oil changed at Cars'N Stu~ for $30, and Katie gets her all changed at Automotives Incorporated for $25. 7. Gas in Lincoln, Nebraska costs $3.4Qfgal. In Austin, Texas, the price is $3.79ng 8. Mark and John!) ead) buy one box of cereal at the local grocery store. JoAnn gets a $1.00 discount by using a coupon. 5. Google and Yahoo! are two large search engine companies. Combined. these companies control a large market share in the search engineI industry. Both companies currently advertise their search engines on television, and each company earns a prot of $550 million. If both companies were to stop advertising on television, each would earn a prot of $600 million. If only one company were to stop advertising on television and the other company continued to do so, the company that stopped advertising would earn a prot of $2L' million and the company that continued to advertise would earn a prot of $300 million. Assume this is a simultaneousmote game where Google and Yahoo! choose to advertise or choose not to advertise, and Google and Yahoo! cannot oollnde. a. Construct the game in the table below, lling out the rms' payoffs for each strategy. (4 points) Yahoo Advertise Don't Advertise Advertise Gmgle Don't Advertise b. Find the Nash Equilibrium of the game. (2 points)