1. A company successfully introduced wireless, studio quality earbuds, This recent innovation has given the company a monopoly position in the market. However, entry by competitors is expected within a few years. Assume the following inverse demand and total cost relationships exist for the market; P= 250 - 0.00125Q C= 1,806,250 + 25Q + 0.001Q^2 a. Determine the quantity, price, and profit camed by the company as a monopoly. b. Now assume competitors enter the market causing perfect competition, Further, assume the market price falls to P = $100. Determine the short-run perfect competition solution at this new market price. (Note: Determine quantity and profit, P is given.) c. Determine the long-run perfect competition solution - quantity, price, and profit. Equations and Rules for Profit Maximization Perfect Competition Short-run solution P=MC Long-run solution P=ACmin = MC Monopoly. MR = MC Average Cost Minimization Condition: MC = AC or O = (a/c)1/2 T=R-C R=P*O AC= TC/O MR = dR/dQ MC = dC/d