2. Demand for anvils can be represented by the following demand curve: P = til] ESQ. Production entails a constant marginal cost of $15. There are no xed costs. a} Assume that anvils are produced in a perfectly competitive industry. What is the equilibrium quantity of anvils'? At what price will they be sold? Calculate the consumer surplus and producer surplus. b} A federal investigation reveals that most companies produce rubber anvils, which cause no harm when dropped upon cartoon characters. As such, these companies are forced out of business, leaving Acme Anvils with a monopoly. How many anvils will Acme sell? At what price? c) Calculate the consumer surplus, producer surplus, and deadweight loss in part {b}. d} Explain intuitively why society is hurt by a monopoly. {That is, explain why there is a deadweigbt loss. Simply saying that there is a deadweight loss is not a correct answer.)