The following problem consists of 20 answers. 15 answers are incorrect and 5 are correct. Each correct answer worths 0.4 points. Each incorrect answer takes 0.08 points off. Therefore, if you identify all the correct answers your grade will be 2 points. If you fail all five answers your grade will be -0.4.

Suppose that the market demand for calculators is given by P=20-(), whereas the marginal revenue is given by MR=20-(),and the marginal cost is equal to 5.

a) Find the market equilibrium under perfect competition. Calculate consumer surplus, producer surplus, and total surplus.

b)Find the market equilibrium under monopoly. Calculateconsumer surplus, producer surplus,deadweightloss,andtotal surplus.