QUESTION 16 Use the following information for the next 5 questions. Consider a market for a chemical product. There are many firms in the market and each produces the exact same chemical. There are no barriers to entry. What type of market structure is best depicted by this market? perfect competition oligopoly monopolistic competition monopoly QUESTION 17 Suppose the firms in the above market face a market demand of P = 380 - Q. Each firm has a marginal cost of $20. What would we expect to be the level of production in this market? 360 units 380 units 180 units 20 units QUESTION 18 What would we expect to be the consumer surplus in the market? $32,400 $48,200 $64,800 $0 QUESTION 19 Would we expect consumers or firms to have any incentive to change their behavior in this market, given the assumptions and outcomes from the previous questions? yes, both consumers and firms should change their choices yes, but only firms have an incentive to change no, both consumers and firms are doing the best that they can yes, but only consumers have an incentive to change QUESTION 20 Referring back to the previous questions, which of the following statements would best fit with the "Using relevant evidence" step in our critical thinking framework? The market structure that you chose to frame the situation. Saying that each firm wants to max profit subject to being a price taker. Your calculations for the expected market quantity and price. That there are many firms in the market and each produces the exact same chemical.