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.

14. (5 points) OneOfFew Inc. is operating in a monopolistically competitive market faces demand and marginal revenue curves as given below:

P = 10 - 0.1Q MR = 10 - 0.2Q

The firm's total and marginal cost curves are:

TC = - 10Q + 0.0333Q3 + 130 MC = -10 + 0.0999Q2,

where P is in dollars per unit, output rate Q is in units per time period, and total cost C is in dollars.

If P= $8.68 and OneOfFew produces Q=13.17, what is the Lerner index of monopoly power for OneOfFew Inc?