A brand is operated by a company that has a monopoly on sales of a given product. Assume that the demand is given by the following function:

P = 210 - X

Where P is the price and X like the quantity produced.

The costs incurred during production are as follows:

C(X) = 1000 + 10X + 1.5X2

• Calculate marginal revenue and marginal cost.
• What price should the producer make if he wants to make the profit as high as possible, and what will be the corresponding quantity? Please illustrate in a figure.
• What will be the company's profit?
• What will be the price elasticity of the adjustment you found in question number 2?
• Now suppose that is served by many small firms, but that the costs do not change in relation to the cost function above; What will be the market price and turnover quantity if we have free competition on the turnover of the product?
• How is social economic profit affected by the transition from monopoly to free competition? Show your answer with relevant calculations.