1:26 PM Fri Dec 3 45% a courses.kpu.ca 4. (9 marks) Suppose that you have the following demand and supply for the market: P = 2000 - 0.5Q MC = ATC = 800 a) Suppose that there are 1000 identical firms in the market, but they act as a is a single priced monopolist (they collude). What is the market price and quantity? Price: Quantity: Profits: A b) What is the consumer surplus for the monopoly? What is the consumer surplus for the perfectly competitive market? CS Monopoly: CS Competitive: c) Now the firms have found a way to act as a perfect price discriminating market. What are the profits? What is the consumer surplus and deadweight loss? Profits: CS