2. Consider a market with 4 rms, each facing the same (inverse) demand function given by

p = 6q/50ifq > 200

p = 4.5 q/200if0 q 200

If there is a drop in one of the rm's marginal cost from c = $3 to c = $2, do you think this rm would greatly increase its sales? Explain!

don't forget to include calculations and graph.