(a) Explain, with an example, what is a cartel (b) Explain, with examples, the difference between Monopoly & Oligopoly (c) Consider the example from our class lecture. Two people, Jack & Jill, own a well each in their village. This is the only source of water for the entire village. The two decide to go into the business of selling water. Their marginal cost of pumping water out of the wells is $0. The following is the demand schedule for water in the village Qty(gal.) price($)

0 120

10 110

20 100

30 90

40 80

50 70

60 60

70 50

80 40

90 30

100 20

110 10

120 0

i. What is the quantity of water produced in the village? What are the profits earned by the two individually? ii. Is this an equilibrium? In other words, will the two decide to change the quantity of water produced or keep producing the same amount of water at all times? (d) For a pure monopoly, answer the following: i. Is there a difference between the market demand curve and the monopolist's demand curve? Explain ii. What are output & price effects? iii. Draw the demand and cost curves and show how the quantity to be produced is determined by the monopolist.