The market for apples at the farmers' market on McGill campus is served by many small producers, of approximately the same size, who produce and sell the same variety of Macintosh apples. It costs each producer 50 cents to produce and sell 1 kg of apples.

P=2-0.02Q

The producers form a cooperative to coordinate sales and set the price, acting like a single firm.

Which price does the cooperative set? How many kg of apples are now sold on campus every day? Does the cooperative make any profit?(2 pts)

8. Is this outcome efficient? Use a graph to compare the outcome with a cooperative to that with many independent producers. Comment.(2 pts)

10. If the cooperative knew that the apple lovers are on campus only in the morning while the others come later in the day, would it change its pricing strategy?(2 pts)