Assume that an industry is characterized by the following:

TC = 100 + 2Q2 Each company's total cost function

P = 90 - 2Q Industry demand curve

a) Find price, quantity and profit if there is only one company in the industry.

b) Find price, quantity and total profit if the market functions as a free competition market.

c) Graphically illustrate the demand curve, the marginal revenue curve, and the marginal cost curve. Identify the difference between profit in a monopolistic market and in a free competition market in two different ways. Make sure the two sizes are the same.