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The market demand curve for some type of shrimp in Louisiana has the following form: Q=200-2P....

The market demand curve for some type of shrimp in Louisiana has the following form: Q=200-2P. There are 500 competitive shrimpers in the market and the sum of their marginal costs curves is MC=20+2Q.
a) Find the equilibrium price and quantity demanded and supplied in this market.

b) Write down the demand function faced by one of these small producers.
c) Now, a wise guy buys out all 500 shrimpers and monopolizes the market. What price will he charge for shrimp? What will be the quantity demanded and supplied?
d) Show these two market equilibria (described in part a and part c) on a graph.
e) Show the deadweight loss due to the monopoly on the graph. What does it indicate? Explain in detail.

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