1. The table below shows the demand curve and the long-run average cost curve for a natural monopoly.

Price	Quantity Demanded	LRAC
$12	100	$6.00
$10	200	$5.50
$8	300	$5.33
$7	400	$5.50
$6	500	$6.00

1. What quantity will be produced in this market?
2. What will the price be in this market?
3. What will this firm's profits equal?

Hint: The profit-maximizing choice for the monopoly will be to produce at the quantity where marginal revenue is equal to marginal cost: that is, MR = MC. Thus, you need to find the quantity where MR comes closest to MC.

2. The information below shows the estimated market shares for the U.S. auto market.

a. Calculate the four-firm concentration ratio.

b. Does this indicate a concentrated market or not?

GM 19%

Ford 17%

Toyota 14%

Chrysler 11%

3. The information below shows the estimated market shares for the global auto market.

a. Calculate the Herfindal-Hirschman Index for the U.S. auto market.

b. Would the FTC approve a merger between GM and Ford?

GM 19%

Ford 17%

Toyota 14%

Chrysler 11%

Honda 10%

Nissan 7%

Hyundai 5%

Kia 4%

Subaru 3%

Volkswagen 3%

Please show work for all calculations! Thank you!!