Demand Curves (2.5 points) 1. Given the ability of a monopolist to price cost fluctuations immediately, would he/she prefer high volatility or low volatility? Why? 2. Would a pair of competing duopoly firms prefer symmetric or asymmetric volatility? Why? (Hint for Q1: model demand as linear, costs as linear, and cost fluctuation as cost being high with 50% probability and low with 50% probability. Model low volatility as costs being half-way between high and low costs with 100% probability. Calculated expected profits and compare.)