The demand and total cost functions for a monopoly firm are: Q(P) = 39.5 – 0.5P TC(Q) = 60 – Q + 0.5 Q2 a) Plot the demand, marginal revenue, marginal cost, and average total cost curves, including the intersections with the horizontal and vertical axes.  b) What are the profit maximising QM and PM for this firm?  c) What is the firm’s profit πM?  d) What are the firm's fixed and variable costs?  e) What would be the socially optimal Q* and P* (round to 1 decimal place if needed)?

Please answer question d, e and f

In a market with demand Q = 2,310 − p, there are 3 identical firms, A, B and C; each with a total cost function TC(Q) = 3/2 Q^2 (with MC(Q) = 3Q, that is) Calculate the market price under each of the 6 scenarios below, (a) A, B, C collude as though they are all plants of the same single multi-plant monopoly. (b) A, B, C act as price taking perfectly competitive firms. (c) B and C act as two plants of a single multi-plant monopoly called “B+C”, which competes in quantities (Cournot competition) against A. (d) (WARNING: non-integer answer) As in (iii) above, but Firm A acts first and chooses its quantity as a leader and B+C follows (Stackelberg competition) (e) B and C jointly form the fringe supply and A is the dominant firm as in the dominant firm model. (f) A, B, C compete in quantities with each other (Cournot-Nash equilibrium). (HINT: Best Response equations should be symmetrical; hence there is a symmetric solution with qA = qB = qC as the Cournot-Nash equilibrium)

Suppose that a unique technology is developed that allowed for the production of lightsabers. The inspired entrepreneur (let's say, Lucas George) who developed the technology immediately slaps a patent on the design and hoards kyber crystals (necessary input). Demand and production costs are given below: P(Q) = 14,000 - 600Q C(Q) = 3,000 + 100² 1. How much profit does Lucas the monopolist earn? 2. Solve for the market failure of Lucas operating as a monopolist relative to what would be observed if Lucas operated as a competitive firm. Martin the Martian (not to be confused with any other martian that might be copyrighted...) observes the profits being made by Lucas. Determining that ray guns are not that different from lightsabers, Martin begins competing with Lucas: P'(Q) = 12,000 - 600Q' 3. A third potential business owner, Dr. When, has watched this market carefully and is trying to decide whether or not to market her Sonic Screwdriver (a near-substitute). Based on your previous…