Microeconomics Homework Nine 3% 1. (20p;oints)$upposemetaUebdowretmtsemuaumdatamram monopoy. a. What is the rm's total revenue from selling 2 units? b. What is the marginal revenue associated with a quantity of 3? c. What is this rm's prot maximizing output level, and what is their prot at that quantity? d. Is this market efficient? How do you know? e. Is this market in long-run equilibrium? How do you know? 2. (12 points) Suppose now that the firm above can perfectly price discriminate- What is their prot maximizing quantity under perfect price discrimination and how much prot do they earn? 3. (12 points) Explain the following situations. a. In Europe, many cell phone providers give away for free what would otherwise be very expensive cell phones when a service contract is purchased. Why might a company want to do that? b. In the United Kingdom, the country's anti-trust authority banned the cell phone service provider Vodaphone from offering a plan that gave customers free calls to other Vodaphone customers. Why might Vodaphone have wanted to offer these calls for free? Why might a government want to step in and ban this practice? Why might it not be a good idea for a government to interfere in this way