Aggregate demand in an industry is Q(p)=200p where p is price and Q is quantity.Each competitor has a cost function of C(q)=(1/2)q² where q is an individual firm's quantity

1.If there are 10 price-taking firms in the market, the competitive price and quantity area.

a.There is not enough information to figure this out

b.Price = 20 and Quantity = 180

c.Price = 180 and Quantity = 20

d.Price = 90 and Quantity = 110

e.None of the above7.

2. If the market is monopolized, profit-maximizing price and quantity are

a.Price = 66.67 and Quantity = 133.33

b.Price = 80 and Quantity = 120

c.Price = 33.33 and Quantity = 166.67

d.There is not enough information to figure this out.

e.None of the above8.

3If there are two Cournot competitors, the equilibrium price and total quantity are

a.Price = 20 and Quantity = 180

b..Price = 50 and Quantity = 150

c.Price = 100 and Quantity = 100

d.Price = 150 and Quantity = 50

e.Price = 180 and Quantity = 20

Two firms, labeled 1 and 2, are located at the ends of a Hotelling line of length 1. L customers are uniformly distributed along the line.Each customers wants to buy one unit of the product and the product is worth V to each customer.A customer located distance d from a given firm incurs travel cost td to purchase the product from that firm.Firms produce at constant marginal cost cand they engage in Bertrand price competition.

1.Definition: The products of firms 1 and 2 are substitutes at the equilibrium prices if the demand for each firm's product increases with a small increase in the other firm's price, starting from the equilibrium price.If each firm's demand does not change with a small increase in the other firm's price starting from the equilibrium prices, then the products are independent in demand at the equilibrium prices.Which of the following statements is true?

a.The products are substitutes at the equilibrium prices regardless of the values of v,t, and c.

b.The products are substitutes at the equilibrium prices If V is sufficiently large relative to t and c

c.The products are independent in demand (and not substitutes) if tis sufficiently large relative to V.

d.(a) and (b) are true

e.(b) and (c) are true

2.Which of the following is true in a Hotelling equilibrium

a.An increase in V increases the equilibrium price regardless of the values of V, t, and c .

b.An increase in c increases the equilibrium price regardless of the values of V ,t , and c.

c.An increase in t increases the equilibrium price regardless of the values of V , t, and c.

d.An increase in the number customers along the line increases the equilibrium price regardless of the values of V, t ,and c.

e.None of the above.