1) characterize the long run equilibrium of a perfectly competitive industry in which average costs are U-shaped as output increases, under both restricted and free entry. b)Discuss the senses in which a perfectly-discriminating monopolist is efficient or inefficient

2) consider an oligopoly in which the inverse demand function p(∑xi ) = a-b∑xi,a,b > 0,and each firm's costs c(xi)- cxi, 0 < c < a. first, given n, determine the cournot-nash equilibrium outputs, profits, deviation of price from marginal cost, and deadweight loss. Then prove that all of these approach zero asymptotically as n tends towards infinity. Comment on the significance of these results.