Question 1 [price ceiling + competitive equilibrium vs. monopoly]: Consider the global market for crude oil. Suppose there exists a single crude oil producer. This producer has a supply function for crude oil given by: P = 0.250. World demand for crude oil is given by: P = 150 0.5Q. Suppose a global government imposes a price ceiling on the market requiring the price for oil to be less than $ 70/ ha rrel. a. b. if the crude oil producer acts as price-taking rm, what is the rm's change in producer surplus as a result of the price ceiling (relative to no policy)? if the crude oil producer acts as pricetaking rm, what is the change in consumer surplus as a result of the price ceiling? if the crude oil producer acts as price-taking rm, what is the change in total welfare as a result of the price ceiling? if the crude oil producer acts as a monopolist, what is the rm's change in producer surplus as a result of the price ceiling? if the crude oil producer acts as a monopolist, what is the change in consumer surplus as a result of the price ceiling? if the crude oil producer acts a monopolist, what is the change in total welfare as a result of the price ceiling? Compare your results from parts c and f. What is the implications for the economy if the government incorrectly assumes a rm is a monopolist when it is actually a price- taking rm? Suppose instead the global government imposes a price ceiling on the market requiring the price for oil to be less than $4o/barrel. h. i. if the crude oil producer acts as price-taking rm, what is the rm's change in producer surplus as a result of the price ceiling? If the crude oil producer acts as pricetakingrm, what is the change in consumer surplus as a result ofthe price ceiling? If the crude oil producer acts as price-taking rm, what is the change in total welfare as a result of the price ceiling? If the crude oil producer acts as a monopolist, what is the rm '5 change in producer surplus as a result ofthe price ceiling? If the crude oil producer acts as a monopolist, what is the change in consumer surplus as a result of the price ceiling? . If the crude oil producer acts as a monopolist, what is the change in total welfare as a result of the price ceiling? . Compare your results from parts 9 and m. What is the implications for the economy if the government incorrectly assumes a rm is a monopolist when it is actually a price- taking rm? Did your answer to part m di'er from your answer to part 9? if so, what does this mean for how the government should set a price ceiling if the government does not really know whether a rm is acting as a monopolist