16. Consider now an industry where firms compete in prices a la Bertrand. The inverse market demand is such that P = 1000 - 10Q. There are two firms, A and B, both with a fixed cost of production of $100 and a constant marginal cost per unit of $10. If each firm produces 100 units, what is the average variable cost at that scale for each firm? a) 100. b) 10. c) 11. d) None of the above. 17. Consider an industry where firms compete in prices a la Bertrand. The inverse market demand is such that P = 1000- 10Q. There are two firms, A and B, both with a fixed cost of production of $100 and a constant marginal cost per unit of $10. What is the Nash equilibrium in prices? a) Both firms choose 10. b) Both firms choose 100. c) Firm A chooses 10 and firm B chooses 9.99. d) None of the above. 18. Consider an industry where two firms compete in prices a la Bertrand. The inverse market demand is such that P = 1000 - 10Q. Firm A has a fixed cost of production of $100 and a constant marginal cost per unit of $5. Firm B has no fixed cost of production but a marginal cost of $10 per unit. What is the Nash equilibrium in prices? a) Both firms choose 10. b) Both firms choose 100. c) Firm A chooses 10 and firm B chooses 9.99. d) None of the answer is correct.21. lfa rm with market power is producing where MR = MC and it wants to increase its output to the point that would be analogous to perfect competition, it will: a. Drop its price to the point where P = AVIS = MR b. Produce at the point where MC intersects with the demand curve c. Raise its price to the point where P = MC d. Drop its price until n_= l e. None of the above 22. If demand for your company's product can he expressed as Q = 400 0.51\