Consider an industry with the following structure. There are 50 firms that behave in a competitive manner and have identical cost functions given by c(y) = y2/2. There is one monopolist that has 0 marginal costs. The demand curve for the product is given by
D(p) = 1, 000 − 50p.
(a) What is the supply curve of one of the competitive firms? ______. The total supply from the competitive sector at price p is _____.
(b) If the monopolist sets a price p, the amount that it can sell is _____.
(c) The monopolist’s profit-maximizing output is ym = 500. What is the monopolist’s profit-maximizing price? _____.
(d) How much output will the competitive sector provide at this price? _______. What will be the total amount of output sold in this industry? ________.