2. (Damimnfm) [homework assigmnent] Suppose that the supply of the competitive fringe is perfectly elastic at p = pF. Suppose that there is a dominant firm with marginal cost per unit of t D with a capacity constraint of m, Where pF > r: D. Let the market demand curve be P = 700 Q. (a) Suppose that the capacity constraint of the dominant rm is not binding (the frrrn's capacity is larger than What it wants to produce). For What values of r: D will the dominant firm be an unconstrained monopolist? (b) Suppose that the dominant firm's unit costs are greater than the maximum value found in (a), but still less than 1131:, and capacity is not constrained. What is the protmaxiinizing price of the dominant firm? (c) Suppose that f : 60 and 6' D : 0. If the dominant firm is not capacity constrained, What is its optimal price? (d) Suppose that m = 30,123 : 60, and (ID : 0. Will the dominant rm be a price maker? Will it earn monopoly prots? How much is a unit of its capacity worth