Question 14 (4 points) The graphs in the figure below represent the perfectly competitive market demand and supply curves for the apple industry and demand and cost curves for a typical firm in the industry. Price Price and cost (dollars Supply of (dollars per pound Boples per pound) Marion Market price Demand for apples 30 40 50 Quantity Quantity (thousands of pounds) (thousands of pounds) Refer to the figure above, which of the following statements is true? The current market price is $3 but the price will fall in the long run as a result of a decrease in demand. The current market price is $3 but the price will fall in the long run as new firms enter the market. The current market price is $3 but the firm will be able to increase the price in the future. O The current market price is $3 but the price will increase in the future as the market demand increases.Question 15 (4 points) The government of a small developing country has granted exclusive rights to Linden Enterprises for the production of plastic syringes. The table below shows the cost and demand data for this government-protected monopolist. Quantity per Day cases Price per Case Total Cost $16 $7.00 15 9.50 14 11.00 13 12.00 12 14.50 11 17.00 10 21.00 9 25.00 30.00 10 35.50 What is the amount of profit that the firm earns? $34.5 $49.0 $42.0 $47.0Question 16 (4 points) Bud and Wise are the only two producers of mango Juice. Bud and Wise are trying to figure out how much of mango Juice to produce. They know: . If they both limit production and produce 10,000 gallons a day, they will make the maximum attainable joint economic profit of $200,000 a day, or $100,000 a day each. . If either firm expands production and produces 20,000 gallons a day while the other limits production and produces 10,000 a day, the one that produces 20,000 gallons will make an economic profit of $150,000 and the other will incur an economic loss of $50,000. . If both expand production and produce 20,000 gallons a day, each firm will make zero economic profit. Find the Nash equilibrium of the game that Bud and Wise play. The Nash equilibrium is for Bud to limit production and for Wise to expand production. The Nash equilibrium is for both Bud and Wise to limit production. The Nash equilibrium is for Wise to limit production and for Bud to expand production. The Nash equilibrium is for both Bud and Wise to expand production