1} Omar and Nada have the only cows in town. Every month they have to decide on the quantity of milk to sell in the market- They haye zero fixed cost and the cost of producing an additional gallon of milk is zero. The demand schedule for milk is as shown below: Gallons of Milk Price oer Gallon 5 22 10 20 _ 2 _ 25 30 12 a] (5 pts} If Omar and Nada decided to collude, act as one producer and split the profit, what would be the quantity of milk they would produce and at what price would they sell their milk in the market? Calculate their profit. Calculate the welfare loss to society that results from having a monopoly. Can you think of other losses to society from having a monopoly? b] (5 pts} Assume that the cows are sold to a large number of producers and the market becomes competitive, what will be the competitive price and quantity? Calculate the consumer surplus and the producer surplus that results in the competitive market. c) (5 pts} Finally if the market was an oligopoly what wl be the Nash Equilibrium price and quantity? Calculate the consumer surplus and the producer surplus that results in the Oligopoly market