Question 1: Perfect Competition Suppose that there are 200 perfectly competitive firms that sell vegetables. e Each firm faces total costs of TC(q)= 10g* + 90. e Market demand 1s Qp(P) = 1500 5P. Question 2: Monopoly Now, suppose that all of the 200 firms are replaced by a single, monopoly. a) b) ) d) e) e Market demand is the same as above Qp(P) = 1500 5P. e The monopoly has total costs of TC(Q)= (1/20) Q? + 18000. What is the profit maximizing price for the monopoly? What is the monopolist's profit? Draw the diagram for the monopoly. Make sure to include the profit maximizing price and quantity, the inverse demand curve and the monopolist's marginal revenue and marginal cost curves. Calculate consumer surplus, producer surplus, and deadweight loss. In the short-run, the monopoly earns positive economic profits. Will the monopoly continue to do so in the long-run? Why or why not