Bidding for Bookstore Licenses. Paige initially has the only license to operate a bookstore in Bookville. She charges a price of $8 perbook, has an average cost of $4 perbook, and sells 1,001 books per year. WhenPaige's licenseexpires, the city decides to auction two bookstore licenses to the highest bidders. Suppose the relevant variables(price, averagecost, and output perfirm) take on only integer valuesno fraction or decimals.

a. Suppose Paige is optimistic and imagines the best possible outcome with atwo-firm market. What is the maximum amount she is willing to pay for one of the twolicenses? $

nothing

(Hint: How will the relevant variableschange? What is the smallest possible change in theirvalues?)

b. Suppose Paige is pessimistic and imagines the worst possible outcome with atwo-firm market. What is the maximum amount she is willing to pay for one of the twolicenses? $

nothing

(Enter your response as aninteger.)