Perfect Competition and Monopoly Problems 1. Suppose the typical firm in a perfectly competitive industry has the following long-run total cost function: TC = 240Q – 6Q2 + 0.08Q*| What is the long-run...

Extracted text: Perfect Competition and Monopoly Problems 1. Suppose the typical firm in a perfectly competitive industry has the following long-run total cost function: TC = 240Q – 6Q2 + 0.08Q*| What is the long-run price for product Q? 2. Stanley Smith has a soft drink concession monopoly at Fort Tippecanoe, Indiana, County Fair. He believes his total cost for supplying the drinks will be TC = 800 + 0.2Q + 0.0001Q? If the County Fair Board tells him he must charge $0.80 and demand for the drinks during the fair is given by the demand curve Q = 5000 – 2500P determine the following: (a) The number of drinks sold and Stanley's total profit at the fixed price of $0.80 per drink. (b) Stanley's profit-maximizing output, price, and profit if he were allowed to set his own price instead of having to charge $0.80.