4. Suppose there are 80 identical competitive firms, each faces the same short-run total cost function STC(Q) = 96 + 2Q^2, and assume all its fixed costs are sunk. Let the market demand equals D(P) = 360 - 4P, answer the following questions: (a) (5%) What is the producer surplus of an individual firm?

5. Suppose Max is a profit-maximizing monopoly firm that sells a well-designed chair. The firm faces the demand curve $$P = 28 - 0.5Q$$. I. If the total cost for producing Q units of output is $\mathrm{TC} = 24 + 1.5\mathrm{Q}^2$. The fixed cost is sunk, and the marginal cost curve is $\mathrm{MC} = 3\mathrm{Q}$. (a) (6%) How much extra surplus does the producer capture when it can engage in first-degree price discrimination instead of charging a uniform price?

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