1. You have returned to your analyst position at the boutique investment banking firm of Dewey, Cheatam, dc Howe (DCH). Another analyst at DCH, remembering your expertise with respect to the peanut butter industry, has asked for your help. (Since he has an MBA from a business school that is located near Cambridge, Massachusetts, he may need some analytical help.) He has heard rumors that a study at the Yale Medical School is going to reveal that peanut butter may cause premature hair loss in men and women. He believes that almost all consumers view peanut butter as a cormnodity and that the peanut butter industry is competitive. He wants to know how this study will affect prices and quantities of peanut butter, the number of companies in the industry, and the protability of the companies in the industry, in both the short run and the long run. a. What will you tell him? b. How would your answer differ if you believed that consumers have moderate brand preferences among the various companies' peanut butter offerings, rather than viewing peanut butter as a cormnodity? 2. The N .E.Fisbent Widget Corp. (NWC) has a monopoly in producing and selling widgets and faces the following demand relationship for its widgets {where Q is the quantity per year and P is the price in U33): Q 2 10000 - 1001'; equivalently, P 2 100 0.01Q The company has fixed costs of $140,000.00 and variable costs of $20.00 per widget. a. What is the profit maximizing level of productionfsales for this company? What is the price? What are its prots