1. Suppose that there is an industry with two identical firms, with this cost function. C(q)=12+q+1/4q^2 What is the industry total cost curve? What is the industry marginal cost curve?
2. A monopolist faces the demand curve D(q)=22-p and has a total cost function() =. What are profits, consumer surplus, and deadweight loss under two scenarios: a) The seller charges a single price to all customers; and b) The seller can perfectly price discriminate.