88 Q n Problem Set 6 PDF ECN+111A+Discuss.. ECN+111A+Midter... Tentative+Study+S.. * ECN 111A_Notes x Problem Set 6... 2 ECN 100A Problem Set 6 2. Suppose an industry has potential firms with identical technologies with TC = 200 + 2Q2. The demand curve in this industry is D(p) =18 - Ap (a) What is the AC minimizing quantity for a representative firm? TC= 20+ 26 G = 10 LAC - 200 da + 2 = 0 200 6 2 2 = 2 (b) How many firms will operate in this market in the long run? P= MC TR : TC = > P = AC P= MC = AC P( P )= 18- 0.25p = 18-0.25410= 18-2.5=/ 15.5 (c) Now assume this market is a monopoly, and we will treat the fixed costs as sunk. What is the monopoly quantity and price? (d) What is the deadweight loss from monopoly pricing (assuming again 1 firm and sunk fixed costs)? What is the producer surplus