Part B: A Frictionless Marketplace Scenario Instructions This scenario is related to Session 1 and Session 2. . For numeric questions please enter only whole numbers (no decimals). Furthermore, please do not use any other characters, such as commas or currency symbols. For the short-text answers please enter only text, numbers, and basic punctuation, without additional formatting. Scenario description Consider a frictionless marketplace for a single homogeneous product. There are 200 potential customers. Consumers' valuations for the product (a valuation is a buyer's maximum willingness to pay) are uniformly distributed between a minimum valuation 0 and a maximum valuation 200. This means that the demand curve for the product is described by the linear formula: P - 200 - Q. Suppliers are identical. Each supplier of the product is able to manufacture it at a constant marginal cost MC = 50 and the total capacity of each supplier is 10. There are a total of 10 suppliers. In this market this is a sufficiently large number to make the market competitive, so that participants are price-takers. Q15: Calculate the following five values. Answer Competitive (equilibrium) price = Total industry output = Each supplier's profit = Producer surplus = Consumer surplus = Q14: Given the large profits that existing producers are making existing suppliers expand capacity and new suppliers enter the market. In particular, each of the 10 existing producers expand their capacity from 10 to 12. They keep producing each unit at a constant marginal cost MC=50. Furthermore, five new producers enter the market and we refer to them as new entrants. Each new entrant is able to manufacture the product at a constant marginal cost MC = 60 and the total capacity of each new entrant is 10. Calculate the following seven values. Competitive (equilibrium) price = Total industry output = Profit of each new entrant = Profit of each of the other suppliers = Producer surplus = Consumer surplus = Total surplus =