Question 3 (1 point) Price of coffee Quantity demanded $3.50 $2.50 1,000 $2.00 2,000 $1.50 3,000 $1.00 4,000 $0.50 5,000 Consider the demand for coffee shown above. Assume there are only two coffee shops in the city. The marginal cost of producing one coffee is $0.90 dollars and there is no fixed cost. If both firms are colluding, how many coffees should the cartel sell in total and at what price? O Q = 5000, P = $0.50 OQ = 4000, P = $1.00 OQ = 3000, P = $1.50 Q = 2000, P = $2.00 Question 4 (1 point) Which of the following industries described is most likely perfectly competitive? The price of blueberries is determined by global supply and demand. A small share of the global supply is produced by Canadian farmers. There are two producers of diamonds in the world and diamonds are sold in many different countries In the cellphone market, the market share of the two main companies combined equals 70%. However, there are other producers in the market as well. Electricity in the province is distributed by one state-owned corporation, which also also sets the electricity distribution price.Question 5 (1 point) Rock Band Payoff Matrix The Beatles Tour No Tour $4m $3m Tour $2m $4m The Rolling Stones $10m $7m No Tour $1m $3m The Beatles and the Rolling Stones are competitors in the rock and roll music industry. Either band can go on tour or not. Consider the hypothetical payoff matrix. Suppose that the bands formed a cartel and split their joint profit 50/50. Which strategies maximize the cartel profits? Both bands go on tour The Rolling Stones go on tour and the Beatles do not O The Beatles go on tour and the Rolling Stones do not ONeither band goes on tourQuestion 1 (1 point)