7. 40 Points. Competitive Markets. A complete starter kit for Vivid Glucose Measure in the competitive market sells for $600. Vivid's total costs are given by TC=2Q3, where Q is the number of starter kits the company sells each month. The corresponding marginal cost of producing kits is MC = 6Q. 5 Points. Solve for the profit-maximizing level of price and output, and profit of Vivid in this perfectly competitive market. 5 Points. Now suppose that Vivid is a monopolistic competition seller of Glucose Measure starter kit, which faces the following inverse demand curve: P100 0.5Q. The seller can produce starter kits for a constant marginal cost of $50 and it has TC = 50Q. Solve for the profit-maximizing level of price and output, and profit in this market. 5 Points. Now suppose that Vivid is a monopolistic seller of Glucose Measure starter kit, which faces the following inverse demand curve: P = 100 - 0.5Q. The seller can produce starter kits for a constant marginal cost of $50. Solve for the profit-maximizing level of price and output, and monopolists profit in this monopoly market. Now suppose that there are two firms on the Glucose Measure Starter Kit market, Vivid, and LOGO. They face the following inverse demand function P = 100 - 0.5Q, where Qqv+qL. qv is output for Vivid, and q for LOGO. These two firms qL have asymmetric marginal costs, Vivid has MC = $50, and LOGO - MCL = $40, as LOGO invested in cost-saving technology. = - 5 Points. Calculate the profit-maximizing level of output and price before LOGO invested in the cost-saving technology (MC = $50), if Vivid and LOGO are in the Bertrand Competition. What is the profit? 10 Points. Find reaction functions. Calculate the profit-maximizing level of output and price, if Vivid and LOGO are in the Cournot Competition. What is the profit? 10 Points. Calculate the profit-maximizing level of output and price if Vivid and LOGO are in the Stackelberg Competition, where LOGO has the first-mover advantage (is a leader). What is the profit?