Question: The question is in the image Part B: Short Answer Questions reasoning. (4 marks) (a) A competitive firm faces a horizontal demand curve and monopolist

The question is in the image

Part B: Short Answer Questions reasoning. (4 marks) (a) "A competitive firm faces a horizontal demand curve and monopolist faces a downward-sloping demand curve". Do you agree with this statement? Explain your Questions (b) and (c) refer to the following table that shows the demand and total cost of a monopolist firm. Price per Unit Quantity Demanded Total Cost of Production (units) (dollars) $85 10 $530 80 11 540 75 12 550 70 13 560 65 14 575 60 15 595 55 16 625 (b) Use marginal cost and marginal revenue to find the optimal level of output and price. Explain carefully how you arrived at your conclusion. (5 marks) (c) How much profit the firm is making

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