Suppose there are 100 firms in a perfectly competitive industry. Each firm has a U-shaped, long-run average cost curve that reaches a minimum of $10 at an output level of 8 units. Marginal costs are given by and market demand is given by MC(q) = q + 2 Q=1000-20P Suppose instead there was a single supplier whose marginal cost curve is MC(Q) =(1/100)Q+2 1) what is the monopolist’s optimal supply? 2) Explain why this outcome is inefficient in comparison to the competitive outcome.