Please show all the work you do to solve a problem (Total 40 points, 4 points per question) The following 5 questions relate to the information provided here. A competitive industry consists of 100 firms. The short-run marginal cost curve for each fi_rm is given by MC = 200 + . 3Q. The demand curve faced by the indust_ry is given as P = 400 - .1Q. 1. What is the equilibrium price and quantity produced by the industry as a whole? 2. What is the price charged by each firm and what quantity will each firm produce? 3. How much profit is each firm making if fixed costs are $375 per firm? 4. What is the producer and consumer surplus in the entire market? 5. What is the producer surplus for each firm? 6. Sketch a perfectly competitive firm operating in short-run equilibrium but making economic losses. Put in all the functions necessary to show that the firm should stay in business in the short-run despite the losses. Shade in the area of loss shown by the drawing. 7. The price of the typical MP3 player (such as the iPod) has been going down in the past 10 years. What could explain this consistent drop in the price of MP3 players? Use the model for the long-run competitive firm to illustrate your answer (hint: you need two diagrams here: one showing the LAC for the typical firm, and another showing the long-run supply curve for the industry.) 8. The combination of the DVD player, the flat plasma screen, and the surround sound has revolutionized watching a movie at home. At the same time, advances in technologr in the movie theater have raised the standard that the home entertainment alternative must achieve. Think about the effects of these technological changes on competitive markets for goods and services that are inuenced by movie going and home movie watching. Identify the market for one related good or service that will expand and one that will contract. Describe in detail the sequence of events as the two markets you've identied respond to the new technologies. 9. Show graphically why economists refer to single-price monopoly market structure as inefficient. 10. If a monopoly generally brings a loss of economic efficiency and consumer surplus, why would a local government give only one utility company (such as a cable television company) a license to enter its market? Should local governments continue this practice