A market is served 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 equals the quantity produced.

The costs incurred in manufacturing the item are as follows:

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

a. Calculate marginal revenue and marginal cost.

b. What price should the producer charge if he wants to make the profit as high as possible, and what will be the corresponding quantity? Please illustrate in a figure.

c. What will be the company's profit?

d. What will be the price elasticity of the adjustment you found in b)?

Now suppose that the market is served by many small firms, but that costs do not change relative 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.