Imagine an industry with 10 firms, each firm has a marginal cost curve such that MC = 2q. This industry overall faces a market demand curve Q = 1000 - 5P, where Q is total quantity and the sum of all individual firm qs.

a) Determine P, Q, q, CS and PS, and DWL as percentage of sales if all 10 firms behave as perfectly competitive firms.

b) Determine P, Q, q, CS and PS, and DWL as percentage of sales if all 10 firms formed a cartel and jointly behaved as a monopoly.

c) Discuss briefly how much would a government be willing to pay for an antitrust agency given your results in parts (a) and (b).