Short Answer (31 points)

Answer each of the questions below completely. Show all your work

11. (6 points total) The average total cost to produce 100 cookies is $0.25 per cookie. The marginal cost is constant at $0.10 for all cookies produced.

a) (2 points) What is the total cost to produce 100 cookies?

b) (4 points) What is the total cost to produce 50 cookies?

12. (6 points) Describe differences (if any) between equilibrium in the Stackelberg model and the Cournot model in an oligopolistic market.