Question 6 (9 points) Suppose that the market for chocolate bars has demand given by Q = 260 - P. For any firm operating in this market, the total cost of producing q chocolate bars is given by c(q) = q~ + 16 for q > 0 and c(q) = 0 for q = 0. Wherever rounding is needed, please round to 3 decimal points. (a) (1 point) If a monopolist with the above costs operates in this market, how many chocolate bars would be produced? (b) (2 points) If there were 10 firms operating in this market, with each behaving as a price-taker, what would be the total number of chocolate bars produced? (c) (2 points) If there was free entry and exit in this market, what would be the long run equilibrium number of firms? (d) (2 points) Suppose 2 firms - firm A and firm B - compete in this market. Each firm's cost function is same as c(q) given above. Suppose firms A and B compete in quantities. How many chocolate bars does firm A produce in the unique (Nash) equilibrium of this game? (e) (2 points) Now consider the same game in part (d) with the following modification. Suppose firm A decides its quantity first and firm B decides its quantity observing what firm A has chosen. How many chocolate bars does firm A produce in the unique subgame perfect Nash equilibrium (SPNE) of this game