Ace Washtub Company is currently the sole producer of washtubs. Its cost function is C[q] =49+2q, and the market demand function is D[P]=1[}[}-P. There is a large pool of potential entrants, each of which has the same cost function as Ace. Assume the Bain-Sylos postulate. Let the incumbent rm's output be denoted (11. a. Derive the inverse residual demand function for a new rm in terms of (:11 and (F? b. Given that the incumbent rm is currently producing ql, if a potential entrant was to enter, how much would it produce? c. Find the limit price. Hint: Find the output for Ace such that the slope ofa new rm's average cost curve equals the slope of a new rm's residual demand curve. d. Suppose instead of assuming Bain-Sylos, we now assume active rms expect to achieve a Cournot solution. Does entry.r depend on {11? Will there be entry