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Two large firms A and B operate in a market. Firm A short run cost demand curve is: TC=500,000-1000Q+100Q^2.
The Total demand curve : P=40,000-20.50Q
a) What is firm A Marginal cost curve?
b) Firm A charges same as firm B = $30,000. What is the Marginal Revenue function of firm A.
c) Given b, what is output produced and total profit from firm A (assume they are maximizing profit)
d) If firm A wants to max profit level of production for a monopolist (suppose is the only firm in the market) what is the output they will produce?
e) Given output in part d, what is the price charged as monopolist?
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