D and E Suppose you have been tasked with regulating a single monopoly firm that sells 50-pound bags of concrete. The firm has fixed costsof $10 million per year and a variable cost of $1 per bag no matter how many bags are produced.Instructions: Enter your answers as a whole number. In part e, round your answer to two decimal places.a. If this firm keeps increasing its output level, will ATC per bag ever increase?(Click to select) ♥Is this a decreasing-cost industry?(Click to select) ♥b. If you wished to regulate this monopoly by charging the socially optimal price, what price would you charge?$per bagAt that price, the size of the firm's (Click to select) v would be $million.Will the firm want to exit the industry?(Click to select) ♥c. You find out that if you set the price at $2 per bag, consumers will demand 10 million bags.At that price, the firm's profit or loss willI be $million.d. If consumers instead demanded 20 million bags at a price of $2, how big would the firm's profit or loss be?At that price, the size of the firm's (Click to select) v would be $million.e. Suppose that demand is perfectly inelastic at 20 million bags, so that consumers demand 20 million bags no matter what the priceis. What price should you charge if you want the firm to earn only a fair rate of return? Assume as always that TC includes a normalprofit.%24

Profit refers to the excess total revenue over the total cost at the particular level of production…

d. If consumers instead demanded 20 million bags at a price of $2, how big would the firm's profit or loss be? At that price, the size of the firm's (Click to select)♥ would be $ million. e. Suppose that demand is perfectly inelastic at 20 million bags, so that consumers demand 20 million bags no matter what the price is. What price should you charge if you want the firm to earn only a fair rate of return? Assume as always that TC includes a normal profit.