SECTION C (30 marks) INSTRUCTIONS: This section contains TWO questions. Answer ONE (1) question only. 3. (a) Ifthe demand and supply curve for Smart TV are: D = 132 SP and S = - 6 + 4P where P is the price of Smart TV. What is the quantity of Smart TV bought and sold at equilibrium? Draw a graph to represent your answer (10 marks) (b) Compare the monopoly market structure with that of monopolistic competition using the following characteristics: (10 marks) i. Number ofrms ii. Barriers to entry iii. Pricing decisions iv. Output decisions v. Prot (c) For the following equation, graph the line and calculate its slope. I = 5,000 250r (put I on the X-axis). (5 marks) ((1) Describe price elasticity of demand. (2 marks) (e) Distinguish between perfect and imperfect market (3 marks) (3) Draw a diagram to show a perfectly competitive rm making a short-run loss but remaining in production. Shade the area that represents the loss. In your diagram include the labels: AR for average revenue, MR for marginal revenue, AC for average cost, AVC for average variable cost and MC for marginal cost. ( 10 marks) (b) The following information is a summary ofa firm's costs (FC - Fixed cost, and TC - Total Costs in dollars) associated with the production of output, Q. Use information from the table to answer parts (i) and (ii). _------- a_ _-_____ ________ _-______