Econ 490, Sec. 2. Assignment 2. Due: Wed. Sept. 30, 8:30am Patents in theory and practice. Do and show your own work. Requests for help are welcome. Problem 1: 5 Points Total Suppose a profit-maximizing innovator discovers a process that reduces the marginal cost of making a widget from $200 per unit to $50 per unit. Suppose the innovator receives a 20- period patent on this process and then the process becomes freely available to firms in a perfectly competitive setting. Suppose demand can be characterized (in each and every period) by the linear function: P=100-20 for Q20, as illustrated below. 150 P 100 50 20 40 or equivalently, Q=50-0.5P if P 100=Reservation Price. Calculate the Marginal Revenue as a function of quantity. 1 point each: a. What quantity and price does a profit-maximizing innovator set during the patent term? b. What are that innovator's profits per period during the patent term? c. What is the gain to consumer surplus per period during the patent term? (Note: consumer surplus before the innovation was zero because MC> 100.) d. What is the price and quantity under perfect competition after the patent term expires? e. What is the total consumer surplus per period after the patent term expires? Problem 2: 5 Points Total Go to the USPTO website and look at a patent of your choice. https://www.uspto.gov/patents-application-process/search-patents 1 points each. a. Please download and attach a copy b. When was it filed? granted? c. Is it assigned? If so, to whom? d. How many domestic patents are cited? e. How many claims