Homework #6 EC330 Fall 2022 Assigned on Wednesday November 2, due on Monday November 7, 1:00PM. Please upload your work on Blackboard, by the deadline. Please do not email me your homework. I will not accept late homework. Please remember that it is OK if you don't have perfect answers for all parts. Show some effort try a few things. Upload your work. Let us revisit the electricity market from HWK4. The market demand is now Q(P) = 30000/P2. There are three suppliers, each with constant marginal cost (a reasonable approximation in electricity generation) and no fixed cost for simplicity. Firm 1 has a capacity of 200 units at MC = 5. Firm 2 has a capacity of 100 units at MC = 8. Firm 3 has a capacity of 100 units at MC = 10. Now, all three firms merge and become a single firm. The newly created firm becomes a monopoly. A. Compute the profits maximizing price and quantity this firm will choose. B. Compute (approximately) the deadweight loss in the monopoly equilibrium. To help you, this is the graph of demand and the MR curve. Price, MR 35 30 25 20 15 10 5 100 200 300 400 500 600 Quantity