Suppose the inverse demand for coal is estimated to be P = 75 - 0.6Q, whereP is the price of coal and Q is the quantity demanded. The supply of coal is given by P = 0.3Q.

1. Graph inverse demand and inverse supply. Calculate and show graphically the price and quantity of coal in a competitive equilibrium in which producers do not consider the future impacts of their actions (i.e., the marginal user cost is external). Also graph the equilibrium values of:

(i) MWTA by producers

(ii) MC of production

(ii) WTA by producers

(iii) Total variable costs (TVC)

(iv) Total revenue

(v) PS (what kind of rent is this?)

(vi) CS