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President Dwight Eisenhower is credited with the establishmentof a national network of controlledaccess roadways–now simplycalled “Interstates”–authorized under the Federal Aid Highway Actof 1956. The road construction and growing popularity of highwaytravel presented an opportunity for PQMaps, which created and soldmaps for highway drivers. The paper maps were printed in color andfolded for drivers’ convenience. In 1960, the PQMap’s total costcurve was given by 15 + 0.6Q + 0.01Q 2 where Q was measured instandard bulk units of printed material. PQMap’s marginal cost was0.6 + 0.02Q.

12. What was the firm-level supply curve for PQMap?

13. Suppose there were 5 map printing companies operating in theU.S. in 1960. All of the firms are price-takers. What was themarket-level supply curve for highway maps?

14. Suppose that the market demand for printed maps in 1960 isgiven by 9300 − 722P. What was the equilibrium price and quantityof highways maps in America in 1960?

15. Suppose that you are an analyst who is interested in the mapproduction industry. You already have the equilibrium price andquantity data for 1960. As you do more research, you find recent astatistic for the market. You learned that, in 2015, roughly 1,200bulk units of paper highway maps were sold at a price of $6. Whatmust have happened in the map printing market between 1960 and2015? You can speculate, but you must justify your argument. (Hint:Start with a graph.)