2.-In the first table below, you will find the willingness to pay for additional) gallons of purified water by the only three consumers in this market. In the second table, you will find the marginal cost of (additional) units of output for the only two producers of purified water in this market. a) Obtain the competitive equilibrium in this market. Also, obtain the consumer and producer surplus that results from this competitive equilibrium. b) Now suppose that a new firm enters the market with the same cost structure as firm 1. What is the effect of entry on prices, quantities, and surplus? GALLONS ANNE BOB CARLISLE 1 $1.5 $1.1 $1.8 2 $1.2 $.9 $1.3 3 $1 $.8 $1.1 4 $.5 $.6 $.9 5 $.4 $.5 $.7 6 $.2 $.4 $.5 GALLONS FIRM 1 FIRM 2 1 $.3 $.1 2 $.4 $.3 3 $.5 $.4 4 $.6 $.6 5 $.8 $.7 6 $.9 $.9 7 $1.0 $1.0 2.-In the first table below, you will find the willingness to pay for additional) gallons of purified water by the only three consumers in this market. In the second table, you will find the marginal cost of (additional) units of output for the only two producers of purified water in this market. a) Obtain the competitive equilibrium in this market. Also, obtain the consumer and producer surplus that results from this competitive equilibrium. b) Now suppose that a new firm enters the market with the same cost structure as firm 1. What is the effect of entry on prices, quantities, and surplus? GALLONS ANNE BOB CARLISLE 1 $1.5 $1.1 $1.8 2 $1.2 $.9 $1.3 3 $1 $.8 $1.1 4 $.5 $.6 $.9 5 $.4 $.5 $.7 6 $.2 $.4 $.5 GALLONS FIRM 1 FIRM 2 1 $.3 $.1 2 $.4 $.3 3 $.5 $.4 4 $.6 $.6 5 $.8 $.7 6 $.9 $.9 7 $1.0 $1.0