1."Suppose the market supply in a Perfectly Competitive market reflects a constant marginal cost. Assuming the market demand is the usual downward-sloping variety (and linear), what value (i.e., a specific number) is the total Producer Surplus in the market? Briefly explain."
2. Consider a market which is served by a single-price monopolist which has a marginal cost given by MC = 2Q and faces market demand given by P = 6,000 - 2Q. Determine the firm's marginal revenue function and calculate its profit-maximizing quantity and its profit-maximizing price. Suppose this firm decided to sell the perfectly competitive quantity at the perfectly competitive price. Calculate these two figures.