1. Sulfikar firm is the monopolist in block-ice market in Selayar Island, South Sulawesi. In theory, a monopolist is a price-maker. a. Explain why being a price-maker does not mean a monopolist can set the market price unlimitedly? Use a graphical illustration to support your explanation. (5 points) b. To bring the product close to his consumers, the firm uses two factories with the cost functions G(Q.) = 200 + 2Q for the first factory and C2(Q2) = 100 + 30for the second factory. Q. dan Q2 are the number of ice blocks produced by Sulfikar firm from its first and second factories, respectively. i. If Sulfikar firm faces the (inverse) demand P(Q) = 1000 2Q, write its profit function from selling the ice blocks produced by both of its factories. (4 points) [Q, the firm's total production of ice blocks, is the sum of production in the two factories, or Q = Q. +Q2, while P is the price of ice blocks in the market] ii. What would be the total production, price, and maximum profit for Sulfikar firm? (6 points) c. The firm is also supplying the neighbouring island, Kabaena Island. After few years of production, Sulfikar realises that the demand behaviours are different between the Selayar and the Kabena Island. To focus on the production, Sulfikar decided to close- down both factories and create a new one. The new cost function is C(q) = 300+ 0.5Q2, where Q is the total production of ice blocks sold on Selayar Island of Q, and on Kabaena Island of Q2, or Q = Q1 + Q2. i. If the demand function of Selayar Island is Pa = 1000 2Q, and the demand function of Kabaena Island is P2 = 1500 - Q2, what are the firm's optimum prices and outputs in each island? (6 points) ii. What is the maximum profit for the Sulfikar firm?(4 points)