c (y ) = 542 + I , where L > 0 is the cost of a license. (a) (2) Assuming that Karim's firm is a price-taker, draw the supply curve. (Don't forget the possibility of exit.) (b) (2) Suppose that Karim's firm exists in a perfectly competitive market with many other identical firms. After firms have had the chance to enter and exit, what level of output must each firm produce? (c) (2) Sean's firm has the same marginal cost as Karim's, but is a monopoly. In Sean's market, demand is given by y (p) =pe where 1. What level of output maximizes firm profits? (d) (2) What level of output is consistent with price-taking? How does this compare to the level from (4c)? (e) (1) What level of output is Paret officio