7. Suppose that a market currently can be described as approximating purely competitive conditions and is in long run equilibrium. The existing price for the product is $700 and total market output is 5,000. Now suppose Declan comes up with a new technology in which economies of scale exist up to a total sales volume of 5,000 units. If the long-run total cost function associated with his new technology is given by TC = 1,000Q - 100Q +5Q (Q's are in units of 1,000) and if the firm earns an economic profit equal to 20 percent of its (lowest possible)cost at equilibrium, a) what will the price of the product become if the industry becomes monopolized? b) Suppose he wants to produce as a perfect competitor. Determine and calculate the price and output for that situation.