1. Each firm in a perfectly competitive market has long run average cost represented as AC(q) = 100q- 10+100/q. Long run marginal cost is MC=200q-10. The market demand is Q = 2150-5P. Find the long run equilibrium output per firm, q*, the long run equilibrium price, P*, and the number of firms in the industry, n*. A. q*=1; P*=190; n*=1200 B. q*=2; P*=240; n*=1200 C. q*=50; P*=15; n*=200 D. q*=100; p*=9991; n*=500 2. Suppose that the market for cigarettes is initially in equilibrium and is perfectly competitive. The demand curve can be expressed as P=60-Q" ; the supply curve can be expressed as P=0.50" . Quantity is expressed in millions of boxes per month. Now suppose that the federal government imposes a production quota on cigarettes of 30 million boxes per month. What is the deadweight loss (per million boxes) associated with the quota? A. $275. B. $75. C. $50. D. $25. 3. A monopolist faces inverse demand P = a - bQ. The monopolist's marginal revenue function is A. MR = a-bQ. B. MR = a - Q. C. MR = a - 2bQ. D. MR = a/Q -b